As the price of a product falls, the demand for the product increases, ceteris paribus

An increase in the number of hours worked would

a. shift the production function upward. b. shift the production function downward. c. shift the production function outward. d. not shift the production function.

Answer the following statements true (T) or false (F)

1) One basic assumption of the aggregate expenditures model is that the price level in the economy is fixed. 2) The major basic premise of the aggregate expenditures model is that if the total demand for output increases, then firms will raise their prices. 3) schedule and an investment schedule both of which indicate that as income increases then consumption and investment will increase. 4) If the expected rates of return from investment decrease in an economy, there would most likely be a downward shift in the investment schedule for that economy. 5) A rightward shift of the investment demand curve translates into an upward shift of the investment schedule in the aggregate expenditures model.