In the short-run macro model, an increase in government spending
a. may reduce real GDP
b. partially crowds out private investment spending
c. usually crowds out exports
d. usually crowds out spending on services
e. requires an increase in taxes
B
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Refer to the Article Summary. Use a graph to illustrate average total cost curves for Macy's before and after closing the 35 to 40 stores. Assume that after closing the stores, Macy's will be producing at minimum average total cost
What will be an ideal response?
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, how much food can he buy if he purchases 2 units of shelter?
A. 20 B. 9 C. 5 D. 10
Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price ceiling on gasoline) was in force in the United States. At the beginning of 1974, some oil-producing countries imposed an oil embargo (a legal prohibition on commerce) on the West. In the spring of 1974, price controls were abolished. Refer to Situation 4-1. An economist would have most
likely predicted that the oil embargo imposed in 1974 would result in a A) leftward shift in the supply (curve) of gasoline. B) rightward shift in the supply (curve) of gasoline. C) leftward shift in the demand (curve) for gasoline. D) rightward shift in the demand (curve) for gasoline. E) both a and d
The airlines industry is dominated by three firms with the following market shares: Quartz (50 percent), Modine (25 percent), and Tetran (20 percent). Which action identifies the price leader in the industry?
a. Quartz unilaterally announces that it is raising its fares. b. Modine increases its fares after its competitors announce price hikes. c. Modine and Tetran formally meet and announce they are increasing their fares. d. Tetran rises its fares following a rate hike by the other firms in the industry.