Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to
a. fall in six months but not now.
b. increase in six months when the price goes up.
c. fall now.
d. increase now to meet as much demand as possible.
c
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If the quantity of goods and services produced in the economy decreases,
A) real GDP would certainly increase. B) nominal GDP would certainly increase. C) it may be possible for nominal GDP to increase. D) it may be possible for real GDP to increase.
The graph shown demonstrates a tax on sellers. How many fewer units are being sold due to the imposition of a tax on this market?
A. 15
B. 16
C. 31
D. 37
When does the fiscal year begin for the U.S. federal government?
a. January 1 b. April 1 c. July 1 d. October 1
Suppose that the bond market and the money market start out in equilibrium. Explain the process by which the interest rate and the price of bonds will change as a result of the Fed increasing the money supply