Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from $120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons. What is the absolute value of the price elasticity of demand?

Which of the following statements is correct?

A. For a given nominal interest rate, the real interest will decrease if inflation decreases. B. For a given expected inflation rate, the nominal interest must increase if real interest decreases. C. For a given real interest rate, the nominal interest must increase if expected inflation increases. D. For a given real interest rate, the nominal interest must decrease if expected inflation increases.

What is the short-run effect of increased deficit spending on an economy experiencing a recessionary gap?

A) Aggregate demand will increase, creating an inflationary ga

In the recent Global Economic Crisis, the negative wealth effect from a 50 percent decline in the stock market caused

A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.

Suppose the actions of the producers of a good generate an external benefit which results in the actual market price of $30 and market output of 220 units. How does this outcome compare to the efficient, ideal equilibrium?

a. The efficient price would higher than $30 while the efficient output would be less than 220 units. b. The efficient price would be higher than $30 while the efficient output would be greater than 220 units. c. The efficient price would be lower than $30 while the efficient output would be less than 220 units. d. The efficient price would be lower than $30 while the efficient output would be greater than 220 units.