What might cause a decrease in current supply of a product?
A. A decrease in the price of one of the inputs used to make the product
B. An increase in the product's own price
C. New information that leads sellers to believe that the product's price will fall in the future
D. New information that leads sellers to believe that the product's price will rise in the future
Answer: D
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The table above has real and nominal GDP for two years for a foreign country
a. What does the GDP price index equal in 2010? What does the value of the GDP price index tell you about 2010? b. What does the GDP price index equal in 2011?
Prior to the Great Depression, classical economists believed that a recessionary downturn would be reversed by:
a. higher wages and prices. b. lower wages and prices. c. an expansionary monetary policy on the part of the Federal Reserve System. d. an increase in government spending that would stimulate aggregate demand.
Net exports must equal zero for any economy
a. that is closed. b. for which Y = C + I + G. c. for which S = Y - C - G. d. All of the above are correct.
Absolute advantage is
A) producing at a lower opportunity cost. B) producing a good using the fewest inputs. C) producing a good only when demand is high. D) producing a good that requires imported components.