Which of the following is most commonly used to monitor short-run changes in economic activity?
a. the inflation rate.
b. real GDP.
c. interest rates.
d. value of the U.S. dollar in the foreign exchange market.
b
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The above figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?
A) a decrease in the number of corn growers B) a decrease the price of wheat, a substitute in production for corn C) an increase in the cost of the seed used to grow the corn D) a decrease in buyers' incomes if corn is an inferior good E) an increased belief among buyers that corn is healthy
If the economy is at macroeconomic equilibrium, then real GDP
A) must equal potential GDP. B) must be less than potential GDP. C) must be great than potential GDP. D) might be equal to, greater than, or less than potential GDP. E) cannot be compared to potential GDP.
Ceteris paribus, a downward shift in the net exports function will cause:
a. equilibrium real GDP to decrease. b. equilibrium real GDP to increase. c. savings to decrease. d. net exports to increase. e. government budget deficit to decline.
Refer to the graph shown. If this monopolist were forced to set price equal to average cost, it would charge a price of:
A. $8. B. $3. C. $12. D. $2.