Consider a market that is in equilibrium. If it experiences an increase in demand, what will happen? The demand curve will shift to the:
A. right, and the equilibrium price and quantity will rise.
B. right, and the equilibrium price will increase and the equilibrium quantity will decrease.
C. right, and the equilibrium price and quantity will fall.
D. left, and the equilibrium price and quantity will fall.
A. right, and the equilibrium price and quantity will rise.
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
The classical growth theory asserts that
A) population growth leads to more growth in technology. B) population growth will lead to people earning only a subsistence level of income. C) economic growth will continue indefinitely. D) economic growth and population growth complement each other. E) population growth increases a nation's economic growth.
Assume that the foreign exchange market is in equilibrium and there are no arbitrage opportunities. If the market price of 200 rubles is $1, and the market price of one yen is 2 rubles, how many yen can you buy with $4?
a. 200 b. 2,000 c. 400 d. 4,000 e. 100
In April 1977 the price of a pound of coffee was $3.00. Between 1977 and 2017 the Consumer Price Index (CPI) rose from 60.6 to 245.1. In April 2017 the price of a pound of coffee was $1.20. What is the price of a pound of coffee in April 1977 adjusted for inflation in 2017?
a. $0.74 b. $4.85 c. $7.28 d. $12.13