When demand increases, the equilibrium price ________ and the equilibrium quantity ________
A) rises; decreases
B) falls; decreases
C) rises; increases
D) falls; increases
C
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Which of the following changes aggregate supply and shifts the aggregate supply curve? i. change in the price level ii. change in potential GDP iii. change in the money wage rate
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
An international organization that buys and sells a commodity to maintain its price is a
a. buffer stock b. common fund c. commodity stabilization fund d. customs union e. all of the above
The optimal number of workers hired by a firm in a competitive labor market is determined by the quantity of labor associated with the following equation:
a. P = MRP b. MPP = MRP c. MRP = w d. P = w e. TLC = w
The government of an economy must borrow money from the loanable funds market if the value of:
a. government expenditures is lower than the value of net taxes. b. government expenditures is higher than the value of net taxes. c. consumption expenditures is lower than the value of net taxes. d. investment expenditures is lower than the value of savings.