Other things being equal, the effects of a decrease in the price of orange juice, is represented by which of the following?
a. A rightward shift in the demand curve for orange juice.
b. An increase in the quantity demanded for orange juice.
c. A leftward shift in the demand curve for orange juice.
d. A decrease in the quantity demanded orange juice.
b
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Which of the following statements is FALSE?
A) When it comes to overall productive efficiency, compared to Japan, Germany and the rest of the European Union, the United States lags far behind. B) Sophisticated financial systems have given U.S. productive efficiency a boost. C) The United States' international competitive position has been helped by its long history of widespread entrepreneurship. D) Economic restructuring and investments in information technology have added to productive efficiency in the United States.
Refer to Figure 13A.2. If the economy were originally saving at the rate s1 but changed to the rate s2:
A. depreciation will not catch up to total saving. B. capital deepening will continue past K2. C. saving exceeds depreciation at K1. D. the economy stops growing at e1.
Long-run equilibrium is characterized by zero profits in
A) monopolistic competition only. B) perfect competition only. C) both perfect competition and monopolistic competition. D) market structures in which there are barriers to entry.
According to the Taylor rule, the Federal Reserve raises the real interest rate as the output gap ________ or the inflation rate ________.
A. increases; decreases B. decreases; increases C. decreases; decreases D. increases; increases