Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. If pizza and beer are complementary goods, a decrease in the price of beer will cause a movement from Point B on demand curve D2 to
A. demand curve D1.
B. demand curve D3.
C. Point A on demand curve D2.
D. Point C on demand curve D2.
Answer: B
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When the price of a bond is ________ the equilibrium price, there is an excess demand for bonds and price will ________
A) above; rise B) above; fall C) below; fall D) below; rise
The "effectiveness lag" in monetary policy is the amount of time it takes
A) to collect the data to determine if a policy change is required. B) for monetary policy to have an impact on inflation and unemployment. C) for monetary policy to affect the money supply. D) to collect the data to determine what effect monetary policy has had on the economy.
In the short run, the price at which a firm's total revenues equal its total costs is
A) a point of positive profits. B) a no return price. C) the short-run shutdown point. D) the short-run break-even point.
Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
A) The equilibrium wage rate will increase and the equilibrium quantity of labor will decrease. B) The equilibrium wage rate and the equilibrium quantity of labor will both increase. C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease. D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.