If the AD curve shifts to the left as a result of a decrease in the money supply growth rate:
A. the economy will temporarily depart from its long-run inflation rate.
B. the economy will permanently depart from its long-run growth rate.
C. the economy will temporarily depart from its long-run growth rate.
D. the economy will adjust immediately and never depart from its long-run growth rate.
Answer: C. the economy will temporarily depart from its long-run growth rate.
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Marketopia's real GDP was $520 billion in 2014 and $550 billion in 2015. Its population was 150 million in 2014 and 155 million in 2015. On the other hand, Econland's real GDP was $200 billion in 2014 and $210 billion in 2015; and its population was 53 million in 2014 and 55 million in 2015. Which of the following statements is true?
A. Econland's GDP per capita increased from 2014 to 2015, while Marketopia's decreased. B. Marketopia's and Econland's GDP per capita both decreased from 2014 to 2015. C. Marketopia's GDP per capita increased from 2014 to 2015, while Econland's decreased. D. Marketopia's and Econland's GDP per capita both increased from 2014 to 2015.
Excess capacity typically occurs
a. in the short run in perfect competition b. in the short run in monopolistic competition c. in long-run equilibrium in perfect competition d. in long-run equilibrium in monopolistic competition e. usually in markets experiencing an increase in demand
Mr. Calhoun owned land on which cotton could be grown, but which he had been unable to rent for years. Suddenly he was getting offers from cotton farmers to lease his land. Which of the following best explains this change in circumstances? a. The price of cotton decreased
b. The price of cotton increased. c. The productivity of the land increased. d. Property taxes on the land increased.
Daniel's consumption of pizzas drops from 6 per week to 4 per week when the price rises from $9 to $11 . His price elasticity of demand for pizza equals
a. 0.5 b. 1 c. 2 d. 0.08 e. 1.7