When an aggregate demand shock hits the economy ________
A) there is no conflict for the central bank between pursuing price or output stability because of the divine coincidence
B) the same long-run equilibrium real interest rate is reached whether the central bank intervenes or not
C) the long-run level of output is unaffected
D) all of the above
E) none of the above
D
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The prices of stock traded on exchanges are determined by
a. the Corporate Stock Administration. b. the administrators of NASDAQ. c. the supply of, and demand for, the stock. d. All of the above are correct.
Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $8; Kyle's cost per ton is $12. Refer to the information given. If the market
price of sockeye salmon is $15 per ton, and Kara and Kyle both catch their quota, their combined profit will be: A. $6,000. B. $14,000. C. $20,000. D. $30,000.
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one kite is painting:
A. 1/12 of a snowboard. B. 1/8 of a snowboard. C. 1/3 of a snowboard. D. 3 snowboards.
Refer to the information provided in Table 24.5 below to answer the question(s) that follow.Table 24.5All Numbers are in $ Million
Refer to Table 24.5. Suppose the economy is in equilibrium and the government increases spending by $50 million, the new equilibrium output is $________ million
A. 1,350 B. 1,450 C. 1,650 D. 1,750