A rightward shift in a demand curve and a rightward shift in a supply curve both result in a
A. Lower equilibrium quantity.
B. Lower equilibrium price.
C. Higher equilibrium quantity.
D. Higher equilibrium price.
Answer: C
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Only a firm with ______________ will be able to make their output profitably.
A. the highest opportunity cost of production B. a comparative advantage at producing their output C. an absolute advantage at producing their output D. low variable costs
In a two-country world, an increase in foreign input prices, ceteris paribus,
A) shifts the SRAS curve leftward, causing the price level to increase. B) shifts the SRAS curve leftward, causing the price level to decrease. C) shifts the SRAS curve rightward, causing the price level to increase. D) shifts the SRAS curve rightward, causing the price level to decrease. E) does not affect the SRAS curve or the price level.
If tastes for foreign goods and services go up, then we would expect imports to:
A. decrease. B. increase and then sharply decrease more. C. remain constant. D. increase.
Exhibit 16-4 Aggregate demand and supply model
In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2?
A. raise the legal reserve requirement B. lower the discount rate C. lower the federal funds rate D. sell government securities