What happens to the equilibrium price and quantity of automobile tires if rubber prices increase and the price of automobiles falls?
A) The equilibrium price rises, but the change in equilibrium quantity is unknown.
B) The equilibrium price and quantity decrease.
C) The equilibrium price falls, but the change in equilibrium quantity is unknown.
D) The equilibrium price and quantity increase.
E) The equilibrium quantity decreases, but the change in equilibrium price is unknown.
A
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According to the above table, if per capita real GDP is currently $1000, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to
A) $2140. B) $2160. C) $2000. D) $2590.
What actions should the Fed take if it believes the economy is about to fall into recession?
What will be an ideal response?
Economic variables that generally turn down before a recession begins and turn back up before the recovery starts are called:
A) leading indicators. B) coincident indicators. C) lagging indicators. D) none of the above.
If the interest rate is 5 percent, what is the current value of $110 to be received one year from now?
a. $104 b. $73 c. $220 d. $116