A technological improvement that lowers production costs for Good A will shift:
a. the supply curve for A to the left
b. the demand curve for A to the left.
c. the demand curve for A to the right.
d. the supply curve for A to the right.
d
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Refer to Figure 22-4. The movement from E to B to D in the figure above illustrates
A) diminishing returns to capital. B) a decline in capital per worker. C) an improvement in technology. D) diminishing returns to labor.
Most economists believe that in the short run
a. real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend. b. real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend. c. real and nominal variables are highly intertwined but that money cannot move real GDP away from its long-run trend. d. real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.
Suppose the balance on the financial account is -$300 billion and the balance on the capital account is +$5 billion. The size of the current account is:
A. +$295 billion. B. -$295 billion. C. +$305 billion. D. +$5 billion.
If supply increases and demand remains unchanged, equilibrium quantity will _______ and equilibrium price will ______________.
A. rise; rise B. fall; fall C. fall; rise D. rise; fall