Suppose that the percentage change in supply is -50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent.
B. increase by 55 percent.
C. increase by 10 percent.
D. decrease by 55 percent.
Answer: C
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Other things the same, continued increases in the money supply lead to
a. continued increases in the price level and real GDP. b. continued increases in the price level but not continued increases in real GDP. c. continued increases in real GDP but not continued increases in the price level. d. a one-time permanent increase in both prices and real GDP.
If Japan's Real GDP falls, this tends to _________________ United States exports, shifting the United States AD curve to the _____________________
A) raise; right B) raise; left C) lower; right D) lower; left
If the United States CPI was 37 in 1973 and in 2016 it was 215.3. By what percent did prices increase in the United States between 1973 and 2016? (Not the annual rate of change, but total.)
A. 5 B. 482 C. 545 D. 48
In the open-economy macroeconomic model, if the supply of loanable funds increases, net capital outflow
a. and the real exchange rate increase.
b. and the real exchange rate decrease.
c. increases and the real exchange rate decreases.
d. decreases and the real exchange rate increases.