An increased equilibrium price and a decreased equilibrium quantity results from:
a. an increase in supply.
b. an increase in demand.
c. a decrease in demand.
d. a decrease in supply.
d
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When comparing the annual inflation rate in the United States based on the CPI with the annual inflation rate based on the PCE price index, the data show that the
A) CPI measure tends to exceed the PCE price index measure. B) PCE price index measure tends to exceed the CPI measure. C) CPI measure and the PCE price index measure are equal. D) CPI measure and PCE price index measure move in opposite directions. E) CPI deflator and PCE price index cannot be compared because they measure prices of different baskets of goods and services.
The supply of loanable funds curve is
a. upward sloping because fewer people are persuaded to forgo current consumption as the interest rate rises b. downward sloping, showing that more investment will be undertaken as inflation decreases c. upward sloping because the opportunity cost of goods and services that must be forgone increases d. downward sloping, showing that as more funds are made available, the risk cost of loaning funds decreases e. usually horizontal
If total spending rises from one year to the next, then the economy must be producing a larger output of goods and services
a. True b. False Indicate whether the statement is true or false
How would a decline in demand for imported commodities by the Chinese affect the market for cargo transportation to China?
A. Supply of cargo transportation shifts to the right causing an increase in demand and equilibrium quantity and a decrease in equilibrium price. B. Supply of cargo transportation shifts to the right causing an increase in quantity demanded and decline in equilibrium price. C. Demand for cargo transportation shifts to the left causing a decline in supply and equilibrium quantity and price. D. Demand for cargo transportation shifts to the left causing a decline in quantity supplied and price.