If the demand curve is perfectly elastic, then an increase in supply will:
a. increase both the price and the quantity exchanged
b. increase the price but result in no change in the quantity exchanged.
c. increase the quantity exchanged but result in no change in the price.
d. decrease the price but result in no change in the quantity exchanged.
c
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
To measure the effect of debt in an economy, economists use a standard measure which involves the ________ relative to the GDP
A) stock of debt B) stock market activity C) outstanding government bonds D) capital stock of equipment
Using the Rule of 70, if the country of Huttodom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?
A) 0.7 years B) 20 years C) 7 years D) 10 years
The Stolper-Samuelson Theorem predicts
A) the level of productivity in export industries. B) which factors are abundant. C) the income distribution effects of trade. D) which goods will be exported. E) the importance of intraindustry trade.