Unlike either the United States or the United Kingdom, ________ did not occur in China's economy between 2007 and 2009
A) a massive monetary and fiscal stimulus
B) a negative demand shock
C) a negative rate of inflation (i.e., deflation)
D) a sharp increase in financial frictions
E) a positive supply shock
D
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Suppose a tax of $10 per unit is imposed on this market. What will be the new equilibrium quantity in this market?
A. less than 70 units B. greater than 100 units C. 70 units D. between 70 units and 100 units
Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.
Which of the following will cause the demand curve for a good to shift to the right?
a. Decrease in income for a normal good. b. Increase in the price of a complementary good. c. Decrease in the price of the good. d. Increase in the price of a substitute good. e. Expectation of a future price decline.
In the long-run version of the aggregate demand and aggregate supply model, a shift in the aggregate demand curve:
A. can change the inflation rate as well as the real growth rate. B. can change the inflation rate, but not the real growth rate. C. can change the real growth rate, but not the inflation rate. D. can change neither the real growth rate nor the inflation rate.