Use the figure above to answer this question. Suppose the economy is operating at point a. A move to ________ could be explained by ________
A) point e; a decrease in the nominal interest rate
B) point c; an increase in the nominal interest rate
C) point d; an increase in real GDP
D) point b; an increase in real GDP
C
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The price elasticity of demand for wheat is 0.42. A drought cuts the supply of wheat. What will happen to the farmers' total revenue?
A) The total revenue will increase. B) The total revenue will decrease. C) The total revenue will not change. D) There is not enough information to determine what happens to the total revenue.
The benefits of social regulation are
A) easy to measure by the marginal value method. B) often difficult to measure. C) obvious to almost everyone, but the costs are usually hidden. D) greater than the costs of social regulation in every example in the country today.
When the rent is not permitted to allocate scarce housing, ______.
Fill in the blank(s) with the appropriate word(s).
Strategic reasoning applies to situations in which decisions are interdependent.
Answer the following statement true (T) or false (F)