How is the market for gasoline affected if the excise tax on gasoline is reduced?
A) The supply of gasoline decreases.
B) The supply of gasoline increases.
C) The equilibrium quantity of gasoline decreases.
D) The equilibrium price of gasoline increases.
B
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In 1997–1998, which one of the following countries experienced a sharp depreciation of its currency?
a. Argentina b. Brazil c. Thailand d. Italy
A rising price level should shift the expenditure schedule
a. upward and decrease equilibrium real GDP. b. downward and increase equilibrium real GDP. c. downward and decrease equilibrium real GDP. d. upward and increase equilibrium real GDP.
Differences in opportunity cost allow for gains from trade
a. True b. False Indicate whether the statement is true or false
If wages are sticky, then a greater than expected increase in the price level
a. raises the real costs of production, so the short-run aggregate supply curve shifts left. b. raises the real costs of production, so the aggregate quantity of goods and services declines. c. reduces the real costs of production, so the short-run aggregate supply curve shifts right. d. reduces the real costs of production, so the aggregate quantity of goods and services rises.