Government-imposed quantity restrictions
A) generate a higher price for the good than would prevail under freely competitive markets.
B) generate a lower price for the good than would prevail under freely competitive markets.
C) does not affect the price of the good because quantity restrictions always ban sale of the good completely.
D) can cause prices to either be higher or lower, but always cause excess quantities supplied to develop.
A
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A decline in the price of resource A will
A. shift the demand curve for A to the right. B. shift the demand curve for A to the left. C. reduce the demand for complementary resource B. D. increase the demand for complementary resource B.
At full employment, actual ________ equals ________
A) real GDP; potential GDP B) real GDP; nominal GDP C) unemployment; zero D) potential GDP; nominal GDP E) nominal GDP; potential GDP
In the new classical model, an unanticipated increase in the money stock would cause
a. the price level and the level of real output to rise. b. the price level to rise with no effect on real output. c. real output to rise with no effect on the price level. d. no change in the price level or level of real output.
Suppose a bottle of wine costs 20 euros in France and 25 dollars in the United States. If the exchange rate is .80 euros per dollar, what is the real exchange rate?