Suppose that only one curve shifts. If you observe that the equilibrium price and equilibrium quantity decreased, then the market experienced a(n):
A. decrease in supply.
B. increase in demand.
C. increase in supply.
D. decrease in demand.
Answer: D
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Marginal cost is equal to the
A) change in total cost divided by the change in output. B) change in average total costs divided by the change in output. C) change in average product divided by the change in output. D) change in total product divided by the change in output.
Federal government spending as a percentage of GDP was the highest since 1960 during: a. the Great Depression
b. the aftermath of the oil crisis in the Gulf nations. c. World War II. d. the aftermath of the Great Recession.
Long-run aggregate supply is equal to
A. inflation minus unemployment. B. short-run aggregate supply. C. short-run aggregate demand. D. potential output.
If the price elasticity of demand for a good equals one, then the demand for that good is:
A. inelastic. B. elastic. C. unit elastic. D. perfectly elastic.