Other Things Being Equal,an Exogenous Fall in the Domestic Price

question 117

Multiple Choice

Other things being equal,an exogenous fall in the domestic price level leads to a rise in private-sector wealth.As a result,there is

• A)an increase in the average propensity to save.
• B)an increase in autonomous desired consumption.
• C)a downward shift in the AE curve.
• D)a downward shift in net exports.
• E)domestic goods appearing less attractive to foreigners.

Understand strategies for fostering positive applicant perceptions about the organization.

Identify the implications of morning bias and stereotypes in performance appraisals.

Understanding the impact of first impressions on organizational attractiveness.

Identifying and describing different types of rater errors in performance appraisals.

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Definitions:

Price Effect

The impact on consumer demand and supply of goods caused by changes in the price of a product or service.

Quantity Effect

The impact on the total quantity bought or sold in a market as a result of changes in price.

Least Elastic

Refers to the good or service with the least sensitivity to changes in price, meaning the quantity demanded or supplied changes very little with price changes.

Immediate Market Period

A very short time frame in market analysis where the supply of goods is fixed.