Which of the following is an example of a company whose stock showed evidence of a price bubble?
A. Facebook
B. Google
C. Amazon
D. All of these responses are correct.
Answer: D
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Which of the following is a step that economists take in order to examine a real-world issue?
a. Determine the results that will occur if the market being considered is a controlled market b. Look at the real-world results to see the similarities they hold with the results of a free market c. Suggest remedies and policies to alter the results of a free-market d. Suggest remedies or policies to alter the real-world result e. Assume that the market transactions, in a real-world, is completely controlled by the government
Refer to the accompanying figure.Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. A; C B. A; B C. B; A D. B; C
If the AD curve is vertical, a positive cost shock will cause ________ in output and ________ in the price level.
A. no change; an increase B. a decrease; no change C. a decrease; an increase D. no change; no change
Classical economists believed that if saving were greater than investment, the interest rate would _____, causing saving to _____ and investment to _____ until the two were equal
a. rise; decrease; increase b. fall; decrease; increase c. fall; increase; decrease d. rise; increase; decrease e. fall; increase; increase