Interest rates in the economy have fallen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
B) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
C) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
D) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
D
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Suppose the San Francisco 49ers lower ticket prices by 15 percent and as a result the quantity of tickets demanded increases by 10 percent. This set of results shows that San Francisco 49ers tickets have
A) an inelastic demand. B) an elastic demand. C) a unit elastic demand. D) an inelastic supply. E) an elastic supply.
Which of the following does the United States export?
A. Computers, but not wheat. B. Wheat and corn, but not automobiles. C. Computers, corn, wheat, lumber, and automobiles. D. Automobiles, but not lumber.
Gross exports depend on the behavior of foreign businesses and consumers.
Answer the following statement true (T) or false (F)
If demand is unit elastic and price is __________, total revenue will _________.
A. raised; increase B. raised; decrease C. lowered; increase D. lowered; remain unchanged