When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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The payment made by a bank to a depositor to use her money for lending to those in need of funds is referred to as the ________
A) dividend B) interest C) principal D) stock
If this firm were a perfect competitor, it would produce at _____ units of output and charging a price of _______.
A. 200; $7.00.
B. 200; $12.80.
C. 280; $10.40.
D. 280; $12.00.
Which market type below is perceived as being the least competitive in mainstream economics?
(a) Perfect Competition; (b) Monopolistic competition; (c) Monopoly; (d) Oligopoly
Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. S d + Q is the product supply curve after an import quota is imposed. Assuming there is no tariff, the import quota:
A. will increase U.S. Treasury revenue by areas G + H.
B. will increase U.S. Treasury revenue by areas E + F + G + H + J.
C. may either increase or decrease the total revenues of foreign producers, depending on the elasticity of domestic demand.
D. will increase the revenues of foreign firms by area E.