If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and lower level of output.
C. higher price level and higher level of output.
D. lower price level and higher level of output.
Answer: A
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On a downward-sloping linear demand curve, total revenue reaches its maximum value at the
a. midpoint of the demand curve. b. lower end of the demand curve. c. upper end of the demand curve. d. It is impossible to tell without knowing prices and quantities demanded.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30
As recessions begin, income
a. and unemployment both fall. b. falls and unemployment rises. c. and unemployment both rise. d. rises and unemployment falls.
________ may antagonize customers and thus can be a very costly way of acquiring funds to meet an unexpected deposit outflow
A) Selling securities B) Selling loans C) Calling in loans D) Selling negotiable CDs