Suppose that the economy is at long-run equilibrium. If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers, then in the short run
a) the price level will fall, and real GDP will fall.
b) real GDP will fall and the price level might rise, fall, or stay the same.
c) real GDP will rise and the price level might rise, fall, or stay the same.
d) the price level will fall, and real GDP might rise, fall, or stay the same.
e) the price level will rise, and real GDP might rise, fall, or stay the same.
Ans: d) the price level will fall, and real GDP might rise, fall, or stay the same.
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If an asset has a 0.7 probability of yielding 10 percent and a 0.3 probability of yielding 20 percent, the expected yield of the asset is
A) 30 percent. B) 20 percent. C) 13 percent. D) 10 percent.
If Country A exports a good to Country B, who is made better off?
a. The producers in Country A and the consumers in Country B b. The consumers in Country A and the consumers in Country B c. The producers in Country A and the producers in Country B d. The consumers in Country A and the producers in Country B e. Only the consumers in Country A will benefit from this trade agreement
Consumer surplus is represented by the area under the supply curve but above the price
Indicate whether the statement is true or false
Government expenditures as a share of the U.S. economy are:
A. the largest in the world. B. the smallest in the world. C. smaller than most Western European countries. D. larger than Canada, France, and the United Kingdom but slightly smaller than Germany and Italy.