The above figure shows the apartment rental market in Bigtown. If severe flooding resulted in the destruction of many of the city's apartment buildings, then the
A) supply curve of apartments would shift leftward and rent would rise above $750.00.
B) demand curve for apartments would shift rightward and rent would rise above $750.00.
C) equilibrium quantity of apartments rented would increase beyond 3,000.
D) equilibrium market price of apartments rented would fall below $750.00.
A
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Contractionary fiscal policy uses ________ government spending and ________ taxes to increase aggregate economic activity
A) lower; higher B) higher; lower C) higher; higher D) lower; lower
The bottom of the supply chain contains ________ and is referred to as the ________ end of the chain.
A) finished goods; downstream B) raw materials; upstream C) finished goods; upstream D) raw materials; downstream
In Macroland, a country whose economy operates according to Okun's law, potential GDP equals $10 trillion, the actual rate of unemployment is 8 percent, and the natural unemployment rate is 6 percent. What is real actual GDP in Macroland?
A. $9.6 trillion B. $10 trillion C. $9.8 trillion D. $10.2 trillion
To economists, rational self-interest is the same as selfishness.
Indicate whether the statement is true or false.