Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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A perfectly competitive firm in a constant-cost industry produces 1,000 units of a good at a total cost of $50,000. The prevailing market price is $48
Assuming that this firm continues to produce in the long run, what happens to output level in the long run? A) The firm produces the same output level. B) The firm's output increases. C) The firm's output falls. D) There is insufficient information to answer the question.
Compare and contrast the predictions of the Heckscher-Ohlin and classical models about likely trading partners of various countries with the predictions of the Linder hypothesis
What will be an ideal response?
If the French government increases its expenditures and reduces taxes, then France's interest rate
a. and its exchange rate rise. b. rises and its exchange rate falls. c. falls and its exchange rate rises. d. and its exchange rate fall.
Land and mineral resources, transportation and communication facilities, factories and farm buildings, equipment, tools, and machinery are all examples of _____________.
a. the economizing problem b. insatiable wantss c. scarce economic resources d. unlimited economic resources e. economic growth