Suppose that for a given good demand decreases and supply increases at the same time. If demand decreases by a greater amount than supply increases, then equilibrium price __________ and equilibrium quantity __________ for that good
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
D
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A currency system in which exchange rates are determined in free markets is called a
A) gold standard. B) flexible exchange rate system. C) fixed exchange rate system. D) all of the above
A reduction in financial liquidity, producing deficient liquid assets
A) shifts the output supply curve to the right. B) shifts the output demand curve to the right. C) shifts the output supply curve to the left. D) shifts the output demand curve to the left.
The definition of economic growth is the annual percentage
A) increase in the per capita real GDP. B) increase in the per capita nominal GDP. C) increase in the total nominal GDP. D) increase in total exports.
Good assumptions simplify a problem without substantially affecting the answer
a. True b. False Indicate whether the statement is true or false