If an increase occurs in the demand for the output of industry A, we would expect all of the following to happen except:
a. an increase in the profits of industry A
b. a decrease in prices of inputs used in the production of A.
c. an increase in the output of industry A.
d. an increase in the demand for inputs used in the production of A.
b
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If one subtracts the amount of bonds held by agencies of the federal government and the Federal Reserve from the national debt, what remains is known as the
a. external debt. b. privately held government debt. c. trade deficit. d. budget deficit.
If the cross-price elasticity of demand for two goods is negative, then the two goods are substitutes
a. True b. False Indicate whether the statement is true or false
For which of the following environmental pollutions would we expect that an inverted-U relationship would exist between environmental harm and per capita income?
A. Lead pollution in water B. Sulfur dioxide in air C. Airborne heavy particles D. Carbon dioxide emissions
Use the following table to answer the next question.All figures in the table below are in billions of dollars.RGDPAggregate Expenditures (Closed Economy)ExportsImports$400$440$50$60450480506050052050605505605060600600506065064050607006805060If this economy were an open economy, the equilibrium real GDP will be
A. $550 billion. B. $650 billion. C. $600 billion. D. $500 billion.