For the price in a market to remain the same, while the quantity traded fell, both supply and demand would have to shift to the left
a. True
b. False
Indicate whether the statement is true or false
True
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In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts up and to the right, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, it will
A) shift the LR curve up. B) not shift the LR curve. C) shift the LR curve down. D) shift the IS curve up and to the right.
Since 1929, the distribution of income in the United States has become:
a. substantially more equal. b. slightly more equal. c. slightly more unequal. d. substantially more unequal.
An employer would never operate on the upward-sloping part of an MRP curve because
a. he would not be maximizing profits. b. he would be hiring workers at wages above MRP. c. the number of workers is too large to get economies of scale. d. he would then have too little capital per worker.
Suppose a tax of $5 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. The tax decreases consumer surplus by $10,000 and decreases producer surplus by $15,000 . The deadweight loss of the tax is $2,500 . The tax decreased the equilibrium quantity of the good from
a. 6,500 to 5,500. b. 5,500 to 4,500. c. 5,000 to 3,000. d. 6,000 to 4,000.