An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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Roughly what percentage of money income was earned by the highest 5% of income earners in the U.S. in 2010?
A) 10% B) 20% C) 30% D) 40% E) 50%
When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 3/4, a $10 billion increase in investment will cause the equilibrium income to rise by
a. $5 billion. b. $10 billion. c. $20 billion. d. $40 billion.
Monopoly profits lead to technological process by:
A. carefully investing deadweight loss. B. encouraging the development of innovations by firms attempting to break a monopoly. C. firms lobbying Congress for protection of their monopolies. D. increasing the amount of human capital in the economy.
The "paired observation" of (12, 6) means
A. x = 12, y = 6. B. x = 6, y = 12. C. the origin is at 12 and 6. D. x = any multiple of 12, y = any multiple of 6.