Interest rates in the economy have fallen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
B) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
C) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
D) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
C
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Labor productivity refers to the quantity of goods and services that can be produced
A) by the entire labor force. B) by one worker or one hour of work. C) in the entire economy in one year. D) by all employed workers.
The principle of comparative advantage does not provide answers to certain questions. One of those questions is
a. Is it possible for specialization and trade to benefit more than one party to a trade? b. Is it possible for specialization and trade to increase total output of traded goods? c. Do opportunity costs play a role in people's decisions to specialize in certain activities? d. What determines the price at which trade takes place?
The pollution emitted by a power plant is an example of a detrimental externality.
Answer the following statement true (T) or false (F)
The share of ________ by the top firms is known as the concentration ratio.
A. outstanding shares of stock issued B. industry output in sales or employment accounted for C. resources used in production D. the labor force employed