Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

In the above figure, when the economy is in a long-run equilibrium, real GDP will be

A) $15.5 trillion. B) $16.0 trillion. C) $17.5 trillion. D) $17.0 trillion.

Which of the following must be true if good X is a normal good and income increases?

a. The demand for X will increase, and thus the price and quantity sold and bought will decrease b. The demand for X will decrease, and thus the price and quantity sold and bought will decrease. c. The demand for X will increase, and thus the price and quantity sold and bought will increase. d. The demand for X will decrease, and thus the price and quantity sold and bought will increase. e. The demand for X will increase, and thus the price and quantity sold and bought will remain the same.

Which of the following is a typical example of monopolistic competition?

a. a wheat farm b. a chain restaurant c. an apple orchard d. an herb grower

Part of the normal aftermath of a period of excessive aggregate demand is

A. improvement in the quality of life. B. reflation. C. real GDP growth. D. stagflation. E. All of these responses are correct.