What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?
a. Both equilibrium price and equilibrium quantity rise.
b. Both equilibrium price and equilibrium quantity fall.
c. Equilibrium price rises and equilibrium quantity falls.
d. Equilibrium price falls and equilibrium quantity rises.
e. Both equilibrium price and equilibrium quantity remain unchanged.
D
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Some researchers argue that the overall standard of living increased during the 1920s. In general, holding constant all other factors that might impact it, economists are careful about connecting an increase in the standard of living to
(a) increases in the amount of labor used in production processes. (b) new inventions being made in research laboratories. (c) increases in the output of goods and services per worker. (d) the discovery of new sources of gold and silver.
A production possibilities frontier will shift inward if there is more unemployment of labor
a. True b. False
If freezing weather in Florida destroys a large portion of the current orange crop,
A) prices of Florida oranges will rise and quantity demanded will fall. B) the supply of and the demand for Florida oranges will both fall. C) the demand for Florida oranges will fall and prices will rise. D) the supply of Florida oranges will decline but not the quantity demanded.
Other things equal, if the central bank raises the target inflation rate, this would result in the
A) AD curve shifting temporarily to the right. B) AD curve shifting permanently to the right. C) AS curve shifting temporarily to the left. D) AS curve shifting permanently to the left.