If the combination r = 5% and Y = $100 billion is on the Fed rule line, we know that the combination r = 7% and Y = $100 billion would represent
A. a movement up the Fed rule.
B. the Fed rule shifting to the left.
C. the Fed rule shifting to the right.
D. a movement down the Fed rule.
Answer: B
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Higher relative wages for labor tends to
A) increase the supply of labor. B) decrease the demand for labor. C) encourage firms to find substitutes, such as automation. D) accomplish all of the above.
The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. Suppose the economy is closed. The equilibrium price of a microwave is ________ and equilibrium quantity is ________.
A. $50; 8,000 B. $125; 4,000 C. $75; 6,000 D. $100; 5,000
Draw supply and demand curves. Show the impact of an increase in demand on the price and quantity exchanged in the market. Show the impact of a decrease in demand on the price and quantity exchanged in the market.
What will be an ideal response?
On a microeconomic level in competitive markets, prices are determined by
A) the interaction of supply and demand B) how much people feel like they need an item C) the greed of corporate executives D) unknown forces sometimes called "animal spirits"