The effect of a shift in the aggregate demand curve due to an increase in consumer confidence will be:
A. a decrease in prices only in the long run; output will remain the same.
B. an increase in both prices and output in the short run.
C. a decrease in both prices and output in the short run.
D. an increase in output only in the long run; prices will remain the same.
Answer: B
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Assuming a nominal interest rate of 6 percent, an unemployment rate of 4 percent, and an inflation rate of 2 percent, the real interest rate is approximately
A) 2 percent. B) 4 percent. C) 6 percent. D) 8 percent.
Refer to Scenario 2.1. If P = $15, which of the following is true?
A) Quantity supplied is greater than quantity demanded. B) Quantity supplied is less than quantity demanded. C) Quantity supplied equals quantity demanded. D) There is a surplus.
The primary difference between a market-day supply curve and a short-run supply curve is the
a. amount of time that suppliers have to respond to a price change b. number of suppliers that can enter the market c. time available to people to align their demands to supply d. type of good being produced e. lower price that increases quantity supplied
The following price-quantity coordinates for gold used by U.S. dentists were observed: P = $875/ounce, Q = 342,000 . P = $200/ounce, Q = 706,000 . These points most likely lie along the
a. supply curve for gold for dental use. b. demand curve for dental use. c. equilibrium curve for dental use. d. production possibilities curve for dental use.