If you are willing to sell your lawn mower business for $355,00 . and someone offers you $420,00 . for it, this transaction will generate:
a. There is no surplus created
b. $65,00 . worth of seller surplus and unknown amount of buyer surplus
c. $30,00 . worth of buyer surplus and $35,00 . of seller surplus
d. $65,00 . worth of buyer surplus and unknown amount of seller surplus
b
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The United States is an example of a mixed economy.
Answer the following statement true (T) or false (F)
A decrease in the price of gasoline shifts the demand for auto batteries to the
A. left, because gasoline and auto batteries are substitutes. B. left, because gasoline and auto batteries are normally used together. C. right, because gasoline and auto batteries are substitutes. D. right, because gasoline and auto batteries are normally used together.
Refer to Table 27-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action? A) real GDP and the unemployment rate B) potential GDP and the inflation rate C) real GDP and the inflation rate D) real GDP and potential GDP
The federal government increases spending by $50 billion and the main effect is an increase in the price level. It must be true that the economy is operating on the
a. horizontal portion of the aggregate demand curve. b. horizontal portion of the aggregate supply curve. c. vertical portion of the aggregate supply curve. d. vertical portion of the aggregate demand curve.