If the equilibrium price level is 135 but the actual price level is 120, then
A) firms decrease their production because they cannot sell the output they produce.
B) the quantity of real GDP demanded is less than the quantity of real GDP supplied.
C) the quantity of real GDP demanded is greater than the quantity of real GDP supplied.
D) aggregate demand will increase to restore equilibrium.
E) aggregate demand will decrease to restore equilibrium.
C
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If Country A can produce an extra plane by giving up two boats, and Country B can produce an extra plane by giving up three boats, then
A) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats. B) The two countries have no incentive to trade with one another. C) Country A would like to trade with B, but B cannot gain by trading with A. D) Country B has a comparative advantage over Country A in the production of planes. E) Country A has a comparative advantage over Country B in the production of planes.
The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 2008
2007 2008 Loans $83 $78 Reserves $4 $5 Deposits $114 $95 The data show that Sun Trust A) increased its reserve ratio to 5.3 percent over the 12 months. B) increased its reserve ratio to 6.4 percent over the 12 months. C) has fewer excess reserves in 2008. D) faced a higher currency drain ratio in 2008.
Which of the following may result when workers have much better information about their own productivities than employers have?
a. discrimination b. natural selection c. principal-agent problems d. unemployment e. adverse selection
Imports are goods and services that are produced:
A. in other countries and consumed domestically. B. domestically and consumed in other countries. C. and consumed in other countries. D. and consumed domestically.