A quota will typically
A. increase the price paid by consumers.
B. increase the price received by sellers.
C. increase the price received by sellers and increase the price paid by consumers.
D. reduce the price received by sellers.
Answer: C
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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
Nobel Prize-winning economist Milton Friedman says, "Inflation is always and everywhere a _____."
What will be an ideal response?
In a free market, a given unit of an input will be used by the firm that
A. earns the largest addition to total profit from the use of that unit of input. B. has the lowest marginal cost of producing another unit of output. C. sells its output for the highest price. D. earns the largest total profit.
Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice Per Unit18$22103315441855206In determining real GDP for year 1:
A. the price index number in year 1 is 95. B. the price index number in year 1 will be greater than 100. C. nominal GDP in years 1 and 2 should be deflated. D. nominal GDP in year 1 should be inflated.