"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run, what is TRUE if the production of ethanol increases?
A) The demand for corn will increase.
B) The supply of ethanol will decrease.
C) The supply of corn will increase.
D) The demand for ethanol will increase.
A
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Suppose y = Ak1/3, the capital-labor ratio is $30,000 per worker, the level of total factor productivity is 400, 50% of the population works, and there are 50 million workers. Real GDP per capita is
A) $4,930.85. B) $6,212.33. C) $7,765.41. D) $9,033.96.
In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy B) targeting the fed funds rate C) quantitative easing D) targeting the inflation rate
If the government faced a balanced budget rule, it would be forced to raise taxes or decrease spending during a recession
a. True b. False Indicate whether the statement is true or false
Describe the automatic stabilizers that are lost to a country that fixes its exchange rate to another currency.
What will be an ideal response?