When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will definitely ________, ceteris paribus.
A. price; increase
B. price; decrease
C. quantity; increase
D. quantity; decrease
Answer: B
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The official government measure of poverty uses the relative approach to defining poverty
Indicate whether the statement is true or false
Suppose an economy's entire output is cars. In Year 1, all manufacturers produce cars at $15,000 each; the real GDP is $300,000. In Year 2, 20 cars are produced at $16,000 each. What is the real GDP in Year 2?
(A) $280,000 (B) $20,000 (C) $320,000 (D) $300,000
Suppose that the economy is in long-run equilibrium and the central bank decided to engage in unexpected expansionary policy by increasing the money supply. If we assume rational expectations, which of the following statements is correct about the effect of expansionary policy in the long run?
A. The unemployment rate will increase, real Gross Domestic Product (GDP) will increase and the price level will increase. B. The unemployment rate will decrease, real Gross Domestic Product (GDP) will decrease and the price level will decrease. C. The unemployment rate will remain unchanged, real Gross Domestic Product (GDP) will remain unchanged and the price level will increase. D. The unemployment rate will remain unchanged, real Gross Domestic Product (GDP) will remain unchanged and the price level will decrease.
When U.S. Steel, a steel producer, bought control of iron ore companies at the beginning of the 20th century, the company was initiating
A. a vertical merger. B. an expropriation. C. a cartel. D. a horizontal merger.