If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of aerobics class has risen from $20 to $30, then
a. pizzas have become relatively more expensive.
b. aerobics classes have become relatively more expensive.
c. the relative prices of pizzas and aerobics classes have remained constant.
d. workers' real income must have decreased.
B
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In the graph showing aggregate demand and aggregate supply after a negative supply shock, we can see that high energy prices in the late 1970s caused ______.
a. a leftward shift in the aggregate demand curve
b. a rightward shift in the aggregate demand curve
c. a leftward shift in the short-run aggregate supply curve
d. a rightward shift in the short-run aggregate supply curve
Refer to the above diagram. All data are for the short run. If product price is P3, the firm will:
A. shut down. B. produce Q5 units and break even. C. produce Q4 units and break even. D. produce Q4 units and make an economic profit.
In finance, leverage:
A. helps explain why a crash is so damaging after a bubble bursts. B. is using borrowed money to pay for investments. C. multiplies the effect of gains and losses in financial markets. D. All of these statements are true.
Last year due to the increased rainfall there was a plentiful supply of blueberries which caused their price to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, what factor of supply has been affected, and what was the overall effect on the supply?
A. The price of an input has been affected; supply will increase. B. The number of sellers has been affected; supply will increase. C. The new technology has been affected; supply will increase. D. The price of an input has been affected; supply will decrease.