Refer to Figure 29.1. At a price of P1 in Figure 29.1, there would be a
A. Shortage measured by the distance Q1 to Q5.
B. Surplus measured by the distance Q1 to Q5.
C. Shortage measured by the distance Q1 to Q3.
D. Surplus measured by the distance Q2 to Q4.
Answer: D
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If the economy experiences an unanticipated demand shock and households and firms have rational expectations, there is
A) no trade-off between unemployment and inflation in either the short run or the long run. B) a trade-off between unemployment and inflation in the long run, but not in the short run. C) a trade-off between unemployment and inflation in the short run, but not in the long run. D) a trade-off between unemployment and inflation in both the short run and the long run.
Today, the number of commercial banks in the United States is about
a. 14,800. b. 21,000. c. 3,000. d. 5,600.
The opportunity cost of a decision can be examined by using a:
a) production possibilities graph b) factors of production chart c) global trade-off grid d) graph of increasing costs
From 1990 to 2010, the public sector share of total output
A. Trended downward to 2000 and then upward to 2010. B. Trended upward through 2010. C. Trended downward to 2010. D. Trended upward to 2000 and then downward to 2010.