If the demand for agricultural output is highly inelastic, an improvement in the technology used in the agricultural industry most likely will cause a:
A. large drop in the price of agricultural output combined with a large decrease in quantity.
B. large drop in the price of agricultural output combined with a small increase in quantity.
C. small drop in the price of agricultural output combined with a large increase in quantity.
D. small drop in the price of agricultural output combined with a small increase in quantity.
Answer: B
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When government action leads to inefficiency, it is known as
A) government failure. B) government as usual. C) lack of government trust. D) politics.
Which of the following may not be true for "multiple exchange rates"?
A) They are a form of protectionism. B) They try to improve a country's BOP. C) They use different exchange rates for different international transactions. D) They are less costly to administer than floating exchange rates.
If inflation expectations decline, then the short-run Phillips curve shifts
a. left, so that at any inflation rate unemployment is lower in the short run than before. b. right, so that at any inflation rate unemployment is lower in the short run than before. c. right, so that at any inflation rate unemployment is higher in the short run than before. d. left, so that at any inflation rate unemployment is higher in the short run than before.
Which combination of shifts of aggregate demand and supply would definitely cause an increase in real GDP?
A. Demand shifts to the right and supply shifts to the right. B. Demand shifts to the left and supply shifts to the right. C. Demand shifts to the right and supply shifts to the left. D. Demand shifts to the left and supply shifts to the left.