If a country is an exporter of a good, then it must be the case that
a. the world price is less than its domestic price.
b. consumer surplus is higher than a no trade situation.
c. the world price is greater than its domestic price.
d. they used an infant-industry argument to protect its producers.
c
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An increase in the money supply in the Friedman-Lucas money surprise model
A) reduces aggregate output, raises the price level, and reduces the real interest rate. B) increases aggregate output, reduces the price level, and reduces the real interest rate. C) increases aggregate output, raises the price level, and reduces the real interest rate. D) reduces aggregate output, raises the price level, and raises the real interest rate.
If we wanted to describe unemployment in terms of supply and demand, we could say:
A. the quantity of those demanding labor is greater than those supplying labor. B. there is a surplus of labor. C. at the prevailing wage, the demand is greater than the supply of labor. D. All of these are true.
When all perfectly competitive firms in a market or all monopolistically competitive firms in a market make zero economic profit,
a. no firms will enter the market b. all firms will exit the market c. a monopolist will take over the market d. the market demand shifts to the left e. the price of the good produced will increase in the long run
During the Great Recession, the growth rate of Real GDP _________________ and the inflation rate ___________________
A) increased; declined B) declined; increased C) declined; also declined D) increased; also increased