If both demand and supply increase, but demand increases more than supply,
a. equilibrium price will fall.
b. equilibrium price will rise.
c. quantity sold will decrease.
d. both the equilibrium price will fall and the quantity sold will decrease.
b. equilibrium price will rise.
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The demand for a product produced by a union becomes more elastic. After this change, how does an increase in the wage rate paid its members affect their employment?
A) It does not decrease employment at all. B) It decreases employment by less than it would have before. C) It decreases employment by more than it would have before. D) It increases employment.
?
Exhibit 10A-3 Macro AD-AS Model
In Exhibit 10A-3, the level of real GDP represented by Yp:
A. ?is potential real GDP for this economy. B. ?indicates that the economy is experiencing zero inflation. C. indicates that the economy is experiencing a recessionary gap. D. ?would be associated with considerable unemployment.
Refer to the given figure.
Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________.
A. 1 percent; 500 B. 5 percent; 500 C. 7 percent; 300 D. 3 percent; 700
The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?
A) 1 2/3 gallons of milk B) 3/5 of a gallon of milk C) $2.50 D) $1.50