Illustrate graphically the effect the credit market crisis in the United States in 2008 had in the market for existing single-family homes
Assuming the demand for existing single-family homes is relatively inelastic, what is likely to happen to the total revenues of home sellers as a result of the credit market crisis?
The credit market crisis resulted in a large increase in the number of home foreclosures, which in turn dramatically increased the supply of existing single-family homes that were for sale, i.e, the supply curve for existing homes shifted right, causing equilibrium price to fall. Assuming the demand for existing single-family homes is price inelastic, the price effect would dominate the quantity effect on total revenue and the total revenues of sellers of single-family homes would decrease.
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Briefly and concisely define the following terms
a. voluntarism b. direct controls c. depletable resource
In the graph showing the data for the short-run and long-run Phillips curve from 1961–1973, we can see that, in the early 1970s, ______.
a. the inflation rate remained high, but the unemployment rate remained low
b. the unemployment rate remained high, but the inflation rate remained low
c. both the unemployment and inflation rates were relatively low
d. both the unemployment and inflation rates were relatively high
Compared to a competitive market, a firm that has a monopsony in a labor market would
A) hire fewer workers and pay higher wages. B) hire more workers and pay higher wages. C) hire more workers and pay lower wages. D) hire fewer workers and pay lower wages.
________ in the foreign interest rate causes the demand for domestic assets to shift to the left and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate