An increase in the price level will:
a. make the consumption function flatter.
b. make the consumption function steeper
c. increase consumption because wages will increase.
d. decrease consumption because falling interest rates make it cheaper to borrow.
e. decrease consumption because the value of net wealth will decrease.
e
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Which of the following scenarios would serve to decrease the demand for unskilled labor in our country?
a. increased productivity gains among the unskilled laborers. b. increased demand for goods produced by unskilled labor. c. increased international trade with countries where unskilled labor is more plentiful. d. increased supply of migrant workers.
Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease