Refer to the scenario above. Which of the following statements will be true?
A) Economy A's steady state equilibrium will lie to the right and below economy B's steady state equilibrium.
B) Economy A's steady state equilibrium will lie to the right and above economy B's steady state equilibrium.
C) Economy A's steady state equilibrium will lie to the left and below economy B's steady state equilibrium.
D) Economy A's steady state equilibrium will lie to the left and above economy B's steady state equilibrium.
C
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The above figure shows the market for apples. If the government restricts output to no more than 300 pounds, then
A) 300 pounds of apples will be sold at $3. B) 200 pounds of apples will be sold at $3. C) no apples will be sold. D) None of the above.
Under which type of market structure is the firm’s pricing decision the most difficult?
a. perfect competition b. monopoly c. monopolistic competition d. oligopoly
The opportunity cost of an activity means the:
a. amount of money the activity costs. b. number of hours that is required to engage in this activity. c. expected gains by engaging in the activity. d. amount of other things that must be sacrificed in order to engage in the activity. e. expected gains minus the expected costs of engaging in the activity.
A decrease in the money supply:
a. raises the interest rate, causing an increase in investment and an increase in GDP. b. lowers the interest rate, causing an increase in investment and an increase in GDP. c. raises the interest rate, causing a decrease in investment and a decrease in GDP. d. lowers the interest rate, causing a decrease in investment and an increase in GDP. e. lowers the interest rate, causing a decrease in investment and a decrease in GDP.