If supply increases, sellers will ______ price, ______ quantity demanded until quantity supplied and quantity demanded are equal.
a. increase; decreasing
b. reduce; increasing
c. increase; increasing
d. reduce;, decreasing
b. reduce; increasing
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For a major country with extensive capital flows, what is the effect of an increase in interest rates?
A. A currency depreciation and increased net exports B. A currency depreciation and reduced net exports C. A currency appreciation and increased net exports D. A currency appreciation and reduced net exports
A country benefits from trade if it is able to obtain a good from a foreign country:
a. that has a very low domestic demand. b. the production of which requires a steady supply of unskilled labor. c. by giving up less of other goods than it would have to give up to obtain the good at home. d. by giving up more of other goods than it would have to give up to obtain the good at home. e. that has a substantial number of substitutes in the domestic market.
A quota brings a more serious misallocation of resources than a tariff.
Answer the following statement true (T) or false (F)
The gap that exists when equilibrium real Gross Domestic Product (GDP) is less than full employment real Gross Domestic Product (GDP) is called a(n)
A. supply gap. B. inflationary gap. C. recessionary gap. D. employment gap.