If gas prices today were $2.50 per gallon, in terms of history, this would be
A. not an all-time high but rather high in inflation-adjusted terms.
B. an all-time high in nominal terms.
C. about the long-term historical average in inflation-adjusted terms.
D. an all-time high in inflation-adjusted terms.
Answer: A
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Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each. Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550The least costly way of lowering smoke emissions from 12 tons to 9 tons per day would be for:
A. Firm X to emit 1 ton, Firm Y to emit 4 tons and Firm Z to emit 4 tons. B. each firm to reduce emissions by 1 ton, emitting 3 tons each. C. Firm X to emit 2 tons, Firm Y to emit 3 tons and Firm Z to emit 4 tons. D. Firm X to emit 4 tons, Firm Y to emit 3 tons and Firm Z to emit 2 tons.
If the multiplier is 3, equilibrium real GDP is $1,000 billion, and investment is $400 billion, what will happen if investment decreases to $380 billion? Real GDP will:
a. increase to $1,020 billion. b. increase to $1,060 billion. c. decrease to $980 billion. d. decrease to $940 billion. e. decrease to $970 billion.
For barter to occur, traders must have a:
A. unit of account. B. coincidence of wants. C. medium of exchange. D. central banking facility.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher