In the 1990s, the United States benefited from a series of favorable supply shocks. This caused a(n)
a. increase in inflation and unemployment.
b. decrease in inflation and unemployment.
c. increase in inflation and a decrease in unemployment.
d. decrease in inflation and an increase in unemployment.
b
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In the above figure, what is the efficient quantity of pretzels to produce each day?
A) one hundred B) two hundred C) three hundred D) four hundred
Policies designed to pay off the national debt will result in:
A. A smaller level of aggregate demand B. Inflation. C. A higher level of aggregate demand. D. A redistribution of income but not wealth.
The price elasticity of demand for higher education is about 1.4. A 5% increase in tuition would lead to:
A. a decrease in enrollment by 7%. B. a decrease in enrollment by 6.4%. C. a decrease in enrollment by 3.6%. D. a decrease in enrollment by 2.8%.
For a given seller, the accompanying figure shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. If the market consists of 50 identical sellers, each with the same opportunity cost as the seller depicted in the figure, then how many units would be supplied in the market at a price of $14 per unit?
A. 175,000 B. 350 C. 17,500 D. 1,750