If the demand and supply curves for a commodity both shift to the left by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a higher price quantity.
B) the same price and a higher quantity.
C) the same price and a lower quantity.
D) a lower price and a higher quantity.
C
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When actual output equals potential output and the inflation rate is stable, the economy is said to be in ________ equilibrium.
A. contractionary B. short-run C. expansionary D. long-run
Studies show that the supply curve for oranges has shifted. Which of the following could not explain the shift of the supply curve?
a. Weather conditions have changed. b. The price of fertilizer has changed. c. The wage paid to orange pickers has changed. d. The price of oranges has changed. e. The demand for grapefruit has changed.
In the importing country, the most likely effect of a tariff on a good is to:
A) raise the price and decrease the quantity demanded. B) raise the price and increase the quantity demanded. C) raise the price without affecting the quantity demanded. D) decrease the quantity supplied.
An increase in the interest rate will cause
A) a reduction in the supply of central bank money. B) a reduction in the demand for currency. C) a reduction in the demand for reserves. D) all of the above E) both B and C