If the demand for a product increases and the supply of the same product increases, the equilibrium price will increase
Indicate whether the statement is true or false
FALSE
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Elaborate on your answer to the previous question by using demand curves. For which good does demand change and for which good does the quantity demanded change?
What will be an ideal response?
The market-clearing price is:
a. the price at which the market is in equilibrium. b. the price at which mutually beneficial trade take place. c. the price at which sellers earn the maximum profit. d. the price at which consumer surplus is zero.
Answer the following statements true (T) or false (F)
1. Union membership has declined in all sectors of the workforce that have unions. 2. Research conducted by responding to job advertisements with fictitious resumes with either very African-American sounding names or very white-sounding names found that white-sounding names received 50% more callbacks for interviews. 3. One important way to use public policy to close the earnings gap between white people and black or Hispanic people would be to improve schools to reduce the gap in educational achievement. 4. By the turn of the millennium, about half of U.S. immigration came from Europe, about a third from Latin America, and the rest from various countries in Asia. 5. One disruptive effect of immigration on the economy is that immigration weighted toward low-skilled workers tends to reduce wages for domestic low-skilled workers.
Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point a, where the expected and actual rates of inflation are each 6 percent. If the actual rate of inflation unexpectedly falls from 6 percent to 4 percent, then the unemployment rate will:
A. temporarily fall from 5 percent to 4 percent.
B. permanently fall from 5 percent to 4 percent.
C. temporarily rise from 5 percent to 7 percent.
D. permanently rise from 5 percent to 7 percent.