When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:

A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.


Answer: A

Economics

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A recent issue of the Wall Street Journal headlined a story, “Bond Prices End Lower.” From this we can conclude that

A. interest rates fell. B. interest rates rose. C. interest rates did not change. D. stock prices fell.

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In the United States, GDP has grown slower than the population since 1870

a. True b. False Indicate whether the statement is true or false

Economics

The M2 definition of money includes demand deposits.

Answer the following statement true (T) or false (F)

Economics

At equilibrium, each firm will realize:





Refer to the cost table above. Now suppose that there are 600 identical firms in this industry, each with the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows:







A. An economic profit of $155

B. An economic profit of $35

C. A loss of $45

D. A loss of $135

Economics