Last year, 1,000 cases of cough syrup were sold at $10; this year, 1,200 cases were sold at $12. The most probable interpretation of these data is that the
A. supply and demand curves are shifting to the right.
B. supply and demand curves are shifting to the left.
C. supply curve has shifted to the left, with no change in demand.
D. demand curve has shifted to the right, with no change in supply.
Answer: D
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The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices):
2006 2007 Consumption 84,000 89,000 Government expenditure 24,000 26,000 Investment 48,000 48,000 Exports 142,000 151,000 Imports 123,000 128,000 Subsidies 1,800 1,900 Taxes 500 500 Which of the following is TRUE regarding Ireland's economy? A) The change in GDP from 2006 to 2007 represented a peak in the business cycle. B) GDP decreased from 2006 to 2007. C) Net exports decreased from 2006 to 2007. D) Consumption was 48 percent of Ireland's GDP in 2007.
To pay for a current account deficit, a country can
A) borrow money from abroad. B) lend money abroad. C) increase official reserves to cover the shortfall. D) transfer money from the capital account to the official settlements account.
Gordon notes that along with slow labor productivity growth in the period 1973-1995, real wages also grew slowly
What sort of productivity shocks are consistent with this explanation of the link between real wage growth and the growth of labor productivity? A) productivity shocks which decrease supply of labor given the demand for labor B) productivity shocks which increase supply of labor given the demand for labor C) productivity shocks which increase demand for labor given the supply of labor D) productivity shocks which decrease demand for labor given the supply of labor
A potential benefit that comes from social regulations would be
A) higher costs. B) a cleaner environment. C) higher tax collections. D) more layoffs.