Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward
Answer: B
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In order to derive an individual's demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change
A) income and hold everything else constant. B) tastes and preferences and hold everything else constant. C) the price of a close substitute and hold everything else constant. D) the price of the product and hold everything else constant.
An import quota will ordinarily raise the price of the good in the importing country.
Answer the following statement true (T) or false (F)
One problem with constructing a perfectly complete realistic economic model is that
A) it would be too simplistic to have any value. B) it would be far too complicated to analyze. C) it would not serve the needs of economists who builds that model. D) None of the above is true.
A country's balance of payments shows a
A) detailed record of the import and export of services for the country. B) detailed record of the country's imports. C) summary record of international financial assistance received by the country. D) summary record of a country's economic transactions with foreign residents and governments over a year.