A television station reports that the price of coffee has increased but the quantity traded in the market has decreased. This situation would be caused by a(n)
A. increase in supply.
B. decrease in supply.
C. increase in demand.
D. decrease in demand.
Answer: B
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Holding other factors constant, if a tax increase moves the government budget from deficit to surplus, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. decrease; decrease B. increase; increase C. decrease; increase D. increase; not change
Property rights that protect inventions are called
A) trademarks. B) copyrights. C) patents. D) exclusive franchises.
Although large-scale manufacturing was not characteristic of colonial economic activity, ___________ was an important exception
a. steel production b. shipbuilding c. cotton textile production d. fish canning
Which of the following is considered in the AS/AD model but was not considered in the short-run macro model?
a. The effect of price changes. b. The effect of interest rate changes. c. Increases in government spending. d. Monetary policy. e. Decreases in government spending.