Suppose that in a free market 2,000 patients purchase an operation to receive an artificial heart at a price of $500,000 per operation. Without the heart, each patient will die. The government decides this price is too high and imposes a maximum price of $200,000 . Everything else equal,
a. more patients will now die.
b. fewer patients will now die.
c. more patients will now die only if the demand curve is vertical.
d. more patients will now die only if the demand curve is horizontal.
a
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If aggregate expenditure is less than GDP, how will the economy reach macroeconomic equilibrium?
A) Inventories will decline, and GDP and employment will decline. B) Inventories will rise, and GDP and employment will rise. C) Inventories will decline, and GDP and employment will rise. D) Inventories will rise, and GDP and employment will decline.
Labor productivity will increase if the ________ increases and ________
A) quantity of labor per unit of capital; immigration increases while capital is fixed B) quantity of capital per hour worked; immigration increases while capital is fixed C) quantity of capital per hour worked; technology improves D) quantity of labor per unit of capital; technology improves
Financial systems have all but which of the following in common?
A) market-oriented emphasis B) payments systems C) central banks D) information asymmetries
An increase in oil prices will
A) shift the short-run aggregate supply curve up and to the left. B) shift the short-run aggregate supply curve down and to the right. C) cause a movement along the short-run aggregate supply curve. D) not affect the short-run aggregate supply curve.