Assume product A is an input in the production of product B. In turn product B is a complement to product C. We can expect a decrease in the price of A to:
A. decrease the supply of B and decrease the demand for C.
B. increase the supply of B and increase the demand for C.
C. decrease the supply of B and increase the demand for C.
D. increase the supply of B and decrease the demand for C.
Answer: B
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Suppose nominal GDP in Mexico decreased by 10% in 2020. Given this information, we know with certainty that
A. real GDP in Mexico decreased in 2020. B. the aggregate price level in Mexico decreased in 2020. C. both the aggregate price level AND real GDP decreased in Mexico in 2020. D. more information is needed to answer this question.
When the aggregate supply curve is ________ any increase in the price level will not cause an increase in aggregate output.
A. vertical B. upward sloping C. horizontal D. downward sloping
Over the past decade, the incomes of the top 1 percent have increased while the incomes of the middle class declined. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________
A) closer to; decreased B) closer to; increased C) further away from; decreased D) further away from; increased
How is economics used as a policy tool?
What will be an ideal response?