Assuming a long-run aggregate supply curve, an increase in government spending results in ________ in output and ________ in prices.
A. an increase; no change
B. no change; an increase
C. no change; a decrease
D. a decrease; a decrease
Answer: B
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An increase in demand occurs when
A. quantity demanded is greater than quantity supplied. B. quantity supplied is greater that quantity demanded. C. the demand curve shifts upward and to the right. D. there is a leftward shift in the demand curve.
At the time the government of Bulgrovia issued new bonds, they issued them at a price that reflected the risk-free rate because investors had no concerns regarding default risk, so did not require a risk premium. That risk-free rate was 4%. These bonds currently have one year to maturity and you notice the yield is 20%. Can you calculate the probability that the Bulgrovian government will default?
What will be an ideal response?
How does a monopolist's marginal revenue change as output increases? Why?
What will be an ideal response?
Refer to Figure 18.4. With free trade, how many gloves are produced domestically in Duckland?
A. 100 B. 80 C. 60 D. 0