If aggregate demand shifts left, then in the short run
a. the price level and real GDP both rise.
b. the price level rises and real GDP falls.
c. the price level falls and real GDP rises.
d. the price and real GDP both fall.
d
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If there is a decrease in market demand for a product exchanged in a perfectly competitive industry, it results in an industry contraction that will end when the product price is
A. less than the marginal cost faced by the firms. B. greater than the marginal cost faced by the firms. C. equal to the marginal cost faced by the firms. D. greater than the average cost faced by the firms.
Describe the conditions under which a common resource is used efficiently
What will be an ideal response?
According to the? text, the term? "Eurosclerosis" refers to
a. The cumulative effects of high productivity growth in Europe.
b. Stagnant economic growth in Europe.
c. A long period of higher growth rates among European countries than the growth rates of the United rates.
d. The differing views about the growth rates of European countries.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.