When market price is above the equilibrium level, it will _____; when price is below the equilibrium level it will _____; when price is at the equilibrium level it will _____.
Fill in the blank(s) with the appropriate word(s).
fall; rise; stay the same
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"Similar to imports, U.S. exports depend on the level of U.S. real GDP so that if real GDP increases, U.S. exports increase." Explain whether the previous sentence is correct or incorrect
What will be an ideal response?
In the long run, constant returns to scale necessarily occur when the firm increases its production and the firm's
A) total cost increases. B) total cost does not change. C) average total cost increases . D) average total cost does not change. E) production increases by more than does the firm's total cost.
Wage and price controls successfully control inflation when the government is pursuing a counter-cyclical policy to reduce the unemployment rate during a recession
Indicate whether the statement is true or false
In an aggregate demand and aggregate supply graph, an expansionary fiscal policy can be illustrated by a:
a. Leftward shift in the aggregate demand curve b. Change in the price level c. Leftward shift in the aggregate supply curve d. Rightward shift in the aggregate demand curve