Refer to the figure. Assuming this market is representative of the economy as a whole, a positive demand shock will:
A. increase both the price level and the quantity of output produced.
B. increase output but leave prices unchanged.
C. lower the price level but leave output unchanged.
D. raise the price level but leave output unchanged.
B. increase output but leave prices unchanged.
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Ben's Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if
A) his Shoppe's total revenue exceeds his capital costs. B) his Shoppe's total revenue exceeds his implicit costs. C) his Shoppe's total revenue exceeds his fixed cost. D) his Shoppe's total revenue exceeds his variable cost.
When a country imports more than it exports, it has a:
A. trade deficit. B. trade surplus. C. zero trade balance. D. policy which forbids exportation.
Suppose that the inflation rate for a given year was 3%. In that year,
a. all prices rose by 3% b. prices on average rose by 3% c. the economy was in an expansion d. the economy was in a recession e. the inflation rate was rising
The international organization that replaced the General Agreement on Tariffs and Trade (GATT) is the
a. World Bank. b. Export-Import Bank. c. World Trade Organization. d. International Monetary Fund.