According to the above figure, what will the price level be in the new long-run equilibrium?

A) Less than 100 B) 115 C) 100 D) 110


B

Economics

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Figure 6.1In Figure 6.1, the total consumer expenditures equal:

A. 200 B. 250 C. 50 D. 30

Economics

The government imposes a unit excise tax on bubble gum. What happens as a result?

A) The equilibrium quantity of bubble gum increases. B) At the original market price, there will be a bubble gum surplus so price decreases. C) At the original market price, there is a bubble gum shortage and so price rises. D) There will be no change in either the market price or equilibrium quantity as long as the excise tax rate is 5 percent or less.

Economics

The aggregate supply curve (short run) is upsloping because:

A. wages and other resource prices match changes in the price level. B. the price level is flexible upward but inflexible downward. C. per-unit production costs rise as the economy moves toward and beyond its full- employment real output. D. wages and other resource prices are flexible upward but inflexible downward.

Economics

According to the Federal Reserve, household wealth in the United States fell by more than $11 trillion in 2008

Predict the effect this decrease in wealth had on the equilibrium real wage and level of employment, and use a graph to support your answer.

Economics