If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock.
B. long-run supply shock.
C. long-run demand shock.
D. short-run demand shock.
Answer: B
You might also like to view...
National saving minus private saving is equal to
A) the government surplus. B) private disposable income. C) the current account deficit. D) interest on the government debt.
Refer to the above figure. In order to stay open in the short run, this firm must
A) earn a positive profit. B) receive a price equal to or greater than the minimum of its average variable cost. C) receive a price exactly equal to its average total cost. D) recover its fixed cost.
Suppose the banks in the Federal Reserve System have $1 billion in transactions accounts and the reserve requirement is 0.20. Ceteris paribus, if the reserve requirement is increased to 0.25, then excess reserves will:
A. Increase by $250 million. B. Increase by $50 million. C. Decrease by $250 million. D. Decrease by $50 million.
Which of the following is an effect of a subsidy that encourages exports?
a. The amount of labor used in production is lower. b. The raw materials needed for production are reduced. c. The costs of production have been reduced. d. The opportunity costs of production are lower.