The demand for oranges increases while the supply decreases. The equilibrium price of oranges ________, and the equilibrium quantity ________
A) rises; decreases
B) falls; perhaps changes but we can't say if it increases, decreases, or stays the same
C) falls; increases
D) does not change; perhaps changes but we can't say if it increases, decreases, or stays the same
E) rises; perhaps changes but we can't say if it increases, decreases, or stays the same
E
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Japan exports cars to the other countries of the world. In an open economy Japan is most likely to have a domestic price that is ________ the world price of cars.
A. less than B. close to C. equal to D. greater than
Figure 10-8
In the short run, the firm in Figure 10-8 will shut down if the price falls below
a.
$8.
b.
$6.
c.
$5.
d.
$1.
Define open market operations and describe how the Federal Reserve Bank uses them to control the money supply.
What will be an ideal response?
Actual GDP will be below potential GDP:
A. when the economy is at full employment. B. during an economic boom. C. when resources are fully utilized. D. during a recession.