If you were a member of the NBER business-cycle dating committee, would you declare that the U.S. economy is now in a recession? Why? Describe the major variables that you would look at to determine whether the economy is in a recession or not, and what features of the data you would look for.
What will be an ideal response?
Many answers are possible. You should discuss GDP and other major macroeconomic variables. You should note that you are looking for co-movement and persistence.
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A fall in import prices or an increase in productivity ________
A) constitute a positive supply shock B) typically leads to a rise in commodity prices C) typically comes with a reduction in output D) all of the above E) none of the above
Why does the industry short-run supply curve slope upward?
What will be an ideal response?
Consider the hypothetical supply and demand of Kidneys.
Initially, kidneys are exchanged by donations only (price=0). If the government decides to legalize kidney sales and the market reaches equilibrium, then:
A. total surplus increases.
B. consumer surplus remains the same.
C. producer surplus remains the same.
D. a shortage of kidneys will arise.
The Consumer Price Index compares the:
a. prices of all goods and services in the economy compared to the prices of those goods and services in a base year. b. prices of consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year. c. prices of producer goods and services that are made for consumers to the prices of those goods and services in a base year. d. prices of goods and services that are purchased by producers to the prices of those goods and services in a base year. e. prices of goods and services that are purchased by consumer manufacturers to the prices of those goods and services in a base year.