When an economic event causes demand or supply to shift, prices and quantities set off in the general direction of:
a. equilibrium.
b. disequilibrium.
c. stabilization.
d. maximization.
a. equilibrium.
When an economic event causes demand or supply to shift, prices and quantities set off in the general direction of equilibrium.
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Tucker Corporation sells its product for $5.00 . Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. Tucker should hire the additional worker only if the wage rate is:
a. $5.00 or less per hour. b. $1.00 or more per hour. c. $25.00 or less per hour. d. none of these.
Consumption, as a component of GDP:
A. includes nondurable goods only. B. measures spending on goods and services by individuals and households. C. measures spending only on goods, not services, by private individuals and households. D. includes durable goods only.
How will a recession in the economies of our foreign trading partners affect US AD?
A. no effect on AD B. AD will increase C. AD will decrease D. depends on whether US offers financial aid to these countries
If the government does not react to a recession:
A. the economy will remain out of its long-run equilibrium indefinitely. B. voters and consumers are likely to be happy with less government interference. C. the economy will recover, but much more slowly. D. the government generally doesn't engage in any policy during a recession.