Which of the following is likely to happen if the government lowers its expenditure?
A) Unemployment will increase. B) Consumption will increase.
C) Price level will rise. D) Investment will increase.
A
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Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the market supply function is Qs = 2.5P - 7.5. How much deadweight loss would there be in this market if the quantity bought and sold was 5,000 units?
A. $0.63 B. $62.50 C. $625 D. $6,250
The median-voter theorem can help explain one reason why politicians tend to change their position on a given issue over the course of an election from:
A. extreme to moderate. B. moderate to extreme. C. extreme to more extreme. D. one extreme to the other.
How do economists explain the shape of the Phillips curve? By arguing that
a. supply shocks and stagflation are inversely related b. changes in the money supply cause prices to increase c. when high rates of GDP growth occur, firms are willing to pay higher wage rates and are able to raise prices as well d. firms' profits rise when plant capacity increases e. wage and price controls work, at least in the short run
Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. If the economy is at Point A currently producing Y0 and the Z factors decrease, the economy will move to Point ________ in the short run and to Point ________ in the long run.
A. B; C B. C; B C. E; D D. D; E