Figure 6-3
In Figure 6-3(a), at any price above $6, quantity demanded
A. falls to zero.
B. becomes infinitely large.
C. equals price.
D. equals the elasticity of demand.
Answer: A
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An income tax hike
A) increases potential GDP. B) increases employment. C) decreases potential GDP. D) Both answers A and B are correct. E) Both answers B and C are correct.
The apple market is perfectly competitive and is in long-run equilibrium. Now a disease kills 50 percent of the apple orchards. In the short run, the price of a bag of apples ________ and the remaining apple growers make ________ economic profit
In the long run, the ________. A) increases; zero; price of apples will return to their original level B) remains the same; zero; orchards will be replanted and growers will make normal profits C) increases; zero; orchards will be replanted and economic profit will return to zero D) increases; positive; orchards will be replanted and economic profit will return to zero
Given the equations for C, I, G, and NX below, what is the equilibrium level of GDP?
C = 1,000 + 0.8Y I = 1,500 G =1,250 NX = 100 A) $3,080 B) $3,850 C) $6,930 D) $19,250
The natural rate of employment
a. will change with changes in the long run aggregate supply curve. b. will be a level such that the expected real wage equals the actual real wage. c. will be at a level where the actual and expected price levels are equal. d. both a and c. e. all of the above.