If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand rises, and aggregate supply falls.
b. Aggregate demand rises, but aggregate supply does not change.
c. Aggregate demand falls, and aggregate supply rises.
d. Aggregate demand and aggregate supply rise.
e. Aggregate demand and aggregate supply fall.
.C
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Refer to the payoffs in the table above. Sears and Wal-Mart must decide whether to lower their prices based on the profits shown in the table. This game has
A) no Nash equilibrium. B) a Nash equilibrium: Sears keeps its prices high and Wal-Mart lowers its prices. C) a Nash equilibrium: both Sears and Wal-Mart keep prices high. D) a Nash equilibrium: both Sears and Wal-Mart lower prices.
Suppose that the government reports the following information on violent crime in a certain area: there were 1100 incidents in the base year (2007) and 1155 incidents in 2008 . The person collecting these data wants to present them in the form of an index. What is the index for 2008?
a. 100.0 b. 110.0 c. 116.0 d. 105.0 e. 95.2
Suppose that when the price of good X falls from $10 to $8, the quantity demanded of good Y rises from 20 units to 25 units. Using the midpoint method, the cross-price elasticity of demand is
a. -1.0, and X and Y are complements. b. -1.0, and X and Y are substitutes. c. 1.0, and X and Y are complements. d. 1.0, and X and Y are substitutes.
The open-economy macroeconomic model takes
a. GDP, but not the price level as given. b. the price level, but not GDP as given. c. both the price level and GDP as given. d. the price level and GDP as variables to be determined by the model.