If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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Other things constant, which person is willing to save more?
A) One that has a higher rate of time preference B) One that has a lower rate of time preference C) One that has no rate of time preference D) One that has no consideration about the value of goods now and in the future
The effect of trade on income distribution
A) can be significant in the sort run. B) is positive for all segments of an economy. C) is insignificant in the short run. D) implies that there are no real gains from trade. E) refutes the model of comparative advantage.
Refer to the accompanying figure. For Chris, the opportunity cost of removing one bag of trash is planting:
A. 3 bulbs. B. 25 bulbs. C. 1/3 of a bulb. D. 1/25 of a bulb.
Which of the following could not be expected to shift the aggregate demand curve?
A. net exports fall B. consumption spending decreases C. an increase in government spending D. a change in real GDP