Suppose a negative technological change in the production of disease-resistant wheat caused the price of wheat to rise. Holding everything else constant, how would this affect the market for corn (a substitute for wheat)?
A) The supply of corn would decrease and the equilibrium price of corn would increase.
B) The demand for corn would increase and the equilibrium price of corn would increase.
C) The demand for corn would decrease because consumers could afford to buy less wheat and corn.
D) The demand for corn would increase and the equilibrium price of corn would decrease.
Answer: B
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Which of the following is true of basic research? a. Basic research is the search for knowledge that does not aim at answering a specific question
b. Basic research is research that is not complex since it addresses elementary questions. c. Basic research is research that seeks to apply scientific discoveries to the development of specific products. d. Basic research is the search for knowledge to solve a particular problem. e. Basic research is always funded by the central government of a country.
The intersection of the aggregate demand and aggregate supply curves determines the ________.
A. equilibrium level of real domestic output and prices B. per-unit cost of production in the economy C. shape of the aggregate demand curve D. productivity level in the economy
At a level of output equal to the economy's potential, the simple spending multiplier in the long run equals one
a. True b. False Indicate whether the statement is true or false
Budget deficit
What will be an ideal response?