In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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The type of commercial policy followed by England under the navigation laws
(a) was followed throughout the 17th and 18th centuries but not by any governments today. (b) was followed throughout the 17th and 18th centuries and is still pursued, in one way or another, by all governments in the world today. (c) was followed throughout the 17th, 18th, and 19th centuries but not by most governments today. (d) was followed throughout the 17th and 18th centuries and by European governments today, but not by the United States since the founding of the nation.
Refer to the graph shown. If the seller expects a price of $52, the minimum amount the firm must produce to be profitable is:
A. 18. B. 16. C. 17. D. 15.
According to Keynes, which of the following is always true at macro equilibrium?
A. The economy achieves full employment B. Aggregate demand is inadequate C. Prices are at the appropriate level D. Aggregate demand equals aggregate supply
Explain the aspects of expansionary and contraction fiscal policy. During which phases of the business cycle would each be appropriate?
What will be an ideal response?