On the graph above, suppose the economy is at point F when there is a temporary negative supply shock. The new long-run equilibrium is at point ________
A) H
B) I
C) F
D) G
E) none of the above
C
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If the demand for orange juice is expressed as Q = 2000 - 500p, where Q is measured in gallons and p is measured in dollars, then at the price of $3, the demand curve
A) is elastic. B) has a unitary elasticity. C) is inelastic. D) is perfectly inelastic.
Assume the central bank decides to pursue contractionary monetary policy. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real credit market with demand for real credit shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the right. d. Start the analysis in the real credit market with supply of real credit shifting to the left. e. Start the analysis in the real credit market with supply of real credit shifting to the right.
What is the most important factor that explains differences in living standards among countries?
a. labor unions b. minimum wage laws c. productivity d. efficiency
Money is defined by economists as
A) the market value of an asset. B) the funds one receives during a specified period of time. C) any good that is widely accepted in exchange and for the repayment of debts. D) both b and c E) all of the above