Answer the following statements true (T) or false (F)
1. The quantity supplied is inversely related to price.
2. If demand and supply increase by the same amount, equilibrium price will rise.
3. If supply increases more than demand, equilibrium price will fall.
4. A change in demand occurs whenever consumers will purchase more because of a decrease in price.
5. An increase in demand tends to increase both the equilibrium price and the amount of a commodity exchanged.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
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(a) Draw a figure, using the Keynesian IS—LM framework, of an economy in recession
(b) If the Fed's goal is to move output to its full-employment level, what should it do with monetary policy? What will happen to the real interest rate? What is the effect on the price level? Show the result in your diagram. (c) Suppose the Fed decides to keep the money supply unchanged. How could the government use fiscal policy to move the economy to full employment? Show the result in your diagram. (d) How does the real interest rate differ between parts (b) and (c)?
A radio station is best described as
A) an end user in a transaction-based market. B) a platform in an audience-making market. C) an end user in a matchmaking market. D) a platform in a shared-input market.
Normal goods have negative income elasticities of demand, while inferior goods have positive income elasticities of demand
a. True b. False Indicate whether the statement is true or false
As incomes increase worldwide, in addition to increased energy use, we expect to see use (and relative share) of grains and oilseeds used for animal feed
a. increase in highly developed economies only b. to decrease worldwide c. to increase worldwide d. stay at relatively the same share