A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium
b. A market equilibrium price higher than the short run price
c. New firms entering the market
d. All of the above
b
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A depreciation of Mexico's currency (the peso) means that
a. Mexico's exports will become more expensive b. it now requires fewer pesos to exchange for one unit of another currency c. Mexico's imports will become less expensive d. it now requires more pesos to exchange for one unit of another currency e. it now requires more of other currencies to exchange for one peso
Suppose in 2000 . nominal GDP in Russia was 1000 rubles and it increased to 2000 rubles in 2001 . If we know that the base year is 2000 and the GDP deflator in 2001 is 100, then of the 1000 ruble increase in nominal GDP, ______ represents an increase in prices only
a. none, or 0 rubles b. all, or 1000 rubles c. 500 rubles d. 2000 rubles e. 100 rubles