Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.
Answer: B
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What will happen to the demand curve for workers in steel mills if some technology that increases their productivity is introduced assuming all else equal?
A) It will cause a downward movement along the demand curve of the workers. B) It will cause an upward movement along the demand curve of the workers. C) It will cause a leftward shift in the demand curve of the workers. D) It may cause a rightward shift in the demand curve of the workers.
If an import quota is imposed on imports of shrimp into the United States, U.S. producers ________ and the U.S. economy will ________
A) gain; be unaffected B) gain; lose C) lose; gain D) lose; lose E) gain; gain
If both the supply and demand curves shift simultaneously, we can always predict what will happen to
A) both the price and the quantity. B) either the price or the quantity, but not both. C) only the price. D) only the quantity. E) neither the price nor the quantity.
Refer to Figure 7-4. With insurance and a third-party payer system, the equilibrium quantity of medical services is
A) 200. B) 500. C) 700. D) >700.