If a demand shock causes an economy to operate at a point above potential GDP, then
a. the aggregate supply curve will shift to return the economy to the original point of equilibrium
b. the economy will correct itself through rising wages and prices
c. this short-run equilibrium point will become the new long-run equilibrium GDP
d. the economy will correct itself through falling wage rates and prices
e. the shock is said to be a negative demand shock
B
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Which of the following countries had the highest average growth rate for per capita GDP from 2000 to 2009?
A. China. B. Burundi. C. Haiti. D. Canada.
Structural unemployment is often caused by
A. the recessionary stage of the business cycle. B. changes in economic organization and production which make some jobs and job skills obsolete. C. new labor force entrants. D. striking workers. E. layoffs associated with seasonal slowdowns in construction and other industries.
Given the equations for demand and supply: Qd = 48 ? 4P and Qs = 4P ? 16, respectively, the quantity demanded equals the quantity supplied at a price of:
A. $12. B. $4. C. $16. D. $8.
Bob got laid off six months ago. He used to go to the movies once a month, but he's only been twice because he lost his job. This type of behavior can be measured using:
A. the income elasticity of demand. B. the price elasticity of supply. C. the price elasticity of demand. D. the cross-price elasticity.