With respect to the market clearing price and the equilibrium quantity of good A, increases in the demand for and the supply of good A will definitely
A. increase the equilibrium quantity of good A but have an uncertain impact on the market clearing price of A.
B. increase the market clearing price and the equilibrium quantity of good A.
C. reduce the market clearing price and the equilibrium quantity of good A.
D. increase the market clearing price of good A but have an uncertain impact on the equilibrium quantity of A.
Answer: A
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A. a recessionary; lower B. an expansionary; lower C. an expansionary; higher D. a recessionary; higher
Over a period of years, exchange rates tend to move in the general direction of the PPP exchange rate
a. True b. False Indicate whether the statement is true or false
Exhibit 14A-1 Aggregate demand and supply model
As shown in Exhibit 14A-1 and assuming the aggregate demand curve shifts from AD1to AD2, the full-employment level of real GDP is:
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Exhibit 10-3 A monopolistic competitive firm in the long run
As presented in Exhibit 10-3, the long-run profit-maximizing output for the monopolistic competitive firm is:
A. zero units per week. B. 200 units per week. C. 400 units per week. D. 600 units per week.