A decrease in demand will have what effect on equilibrium price and quantity?
a. Price will increase; quantity will decrease.
b. Price will decrease; quantity will increase.
c. Both price and quantity will increase.
d. Both price and quantity will decrease.
d
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The sale of a used automobile would not be included in GDP of the current year because it is ________.
A. not a market transaction B. not current production C. a private transfer payment D. a purely financial transaction
Which of the following has been the largest organized group of U.S. unions during the past 50 years?
A) AFL-CIO B) AFL C) CIO D) Change to Win
The short-run macro model
a. relies on the market-clearing assumption b. is used primarily for long-run analysis c. is used primarily for short-run analysis d. focuses on the supply of and demand for resources e. focuses on fluctuations in the financial markets to explain fluctuations in real GDP
When firms already in the industry produce under conditions of substantial economies of scale, the market is said to be contestable
Indicate whether the statement is true or false