Refer to the graph shown. Given the quantity restriction of QR, a reduction in demand will:
A. have no impact on market price.
B. raise equilibrium price.
C. lower the market price.
D. raise equilibrium quantity.
Answer: C
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Suppose real GDP was 120 in year 1 and 156 in year 2. The growth rate of real GDP is
A) 5.6 percent. B) 18 percent. C) 30 percent. D) 36 percent.
The idea of the multiplier is that a change in ________ expenditure changes real GDP, which then changes ________ expenditure. The change in total expenditure will be larger than the initial change in ________ expenditure
A) induced; induced; autonomous B) induced; autonomous; induced C) autonomous; induced; autonomous D) induced; autonomous; autonomous E) autonomous; induced; induced
In perfect competition in the long-run equilibrium, can consumer surplus or producer surplus be increased? Explain your answer
What will be an ideal response?
At the XYZ Co, a unit of capital costs 3 times as much as a unit of labor. If the isoquants are convex, and the firm does not change its input mix in the long run, we can conclude that
A) MPK = 3 ? MPL. B) the firm will not hire any capital. C) the firm will hire 3 times as much labor as capital. D) the firm will hire 3 times as much capital as labor.