Draw in a new supply curve, S1, on figure, showing an increase in supply. What happens to price and quantity?
Equilibrium price falls and equilibrium quantity rises.
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Describe the effects of contractionary fiscal policy by the domestic government on output, the real interest rate, and net exports in both the domestic and foreign country, using a Keynesian model
What will be an ideal response?
Which of the following is true if the price of coffee increases?
a. The demand for tea, a substitute good, will decrease. b. The demand for coffee will increase. c. The demand for coffee and tea will decrease. d. Both the demand for coffee and tea will increase. e. The demand for tea, a substitute good, will increase.
In reference to industrial policy, networks of interdependent firms, universities, and businesses that focus on production of a specific type of good are called:
A. bundles. B. clusters. C. vertical industries. D. integrated industries.
Which piece of federal legislation aims to prevent monopolization and restraint of trade?
A. Clayton Act B. Wheeler-Lea Act C. Sherman Act D. Federal Trade Commission Act