An increase in demand will have what effect on equilibrium price and quantity?
A. Price will increase; quantity will decrease.
B. Price will decrease; quantity will increase.
C. Both price and quantity will increase.
D. Both price and quantity will decrease.
Answer: C
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Refer to the scenario above. Which of the following will happen if she puts him into a day care?
A) The country's GDP will decrease by $12,000. B) The country's GDP will increase by $12,000. C) The country's GDP will remain unchanged. D) The country's trade deficit will increase by $12,000.
Differences in the productivity of labor accounts for comparative advantage if:
a. the minimum wage varies across countries. b. the size of the domestic market varies across countries. c. the labor hours required to produce each good varies across countries d. the strength of workforce varies across countries. e. the laborers are paid different wages in different countries.
A decrease in the price level
a. decreases investment spending, thereby shifting the AD curve. b. increases investment spending, thereby shifting the AD curve. c. does not shift the AD curve. d. increases autonomous consumption spending, thereby shifting the AD curve. e. changes the slope of the AD curve.
A tax credit for purchases of capital goods causes the interest rate to increase and the exchange rate to appreciate
a. True b. False Indicate whether the statement is true or false