Question

21. If the price of chocolate bars decreases in few were chocolate bars are sold, then which of the following is the best explanation for what happened within this market?

A. decrease in the supply curve

B. decrease in the demand curve

C. increase in the supply curve

D. increase in the demand curve

E. decrease in both the demand and supply curve

22. if large amounts of consumption spending occur within the US, then we are most likely to observe which of the following changes within the macroeconomy?

A. The price level will rise and real GDP will increase

B. The price level will rise and real GDP will decrease

C. The price level will rise and real GDP will be unchanged

D. The price level will remain unchanged and real GDP will increase

23. if there are significant increases in the cost of producing goods and services then we are most likely to observe which of the following changes within the macroeconomy?

A. The price level will rise and real GDP will increase

B. The price level will rise and real GDP will decrease

C. The price level will rise and real GDP will be unchanged

D. The price level will remain unchanged and real GDP will increase

24. Which of the following is most likely to occur when inflation unexpectedly increases:

A. current consumption will increase

B. purchasing power increases

C. market interest rates will decrease

D. borrowers will be worse off

E. lenders are worse off

Answer 1

Answer 21

The correct answer is Option E  i-e decrease in the demand curve and supply curve .

Reasoning - when the price of the choclate bar decrease the demand would increase and more customr woul want to buy it .The supply curve would decreaae with the decrease in equilibrium price and the quantity of choclate bar would increase overall decrease in the supply curve .Similarly the demand would increase but the demand curve will lower down as to the decrease price and increased supply .

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