If supply and demand both decrease, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

A. lower; lower
B. higher; higher
C. lower; uncertain
D. uncertain; lower


Answer: D

Economics

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In 2011, the per capital output of goods and services in the United States was approximately

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All of the following present significant problems with measuring real GDP and the price level except

A) changes in absolute price levels. B) changes in relative price levels. C) changes in the quality of goods over time. D) the introduction of new goods.

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Imports and Exports

Examine Annex I of the President's 2007 Annual Report on the Trade Agreements Program. (To view this document, the free Adobe Acrobat reader plug-in must be installed in your browser, if you do not have this, you may download it from here.) Questions:
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  • Why did U.S. imports rise in 2006?
  • What happened to the trade deficit in 2006? Why?
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Economics

According to the process of creative destruction, at first the entrepreneur will be able to sell her product for

a. a low price because it is not well known. b. a high price because there is no competition. c. a fair price because these are contestable markets. d. at a price of zero until the market is created.

Economics