Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short-run equilibrium is given by point
A) A.
B) B.
C) C.
D) D.
B
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A corporation’s income is taxed
A. immediately after it is deposited in the bank. B. only before it is distributed to its owners. C. only after it is distributed to owners. D. both before and after it is distributed to owners.
When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600 . Given this information and using the midpoint method, we know that the demand for candy bars is
a. inelastic. b. elastic. c. unit elastic. d. perfectly inelastic.
Which of the following describes a characteristic of a perfectly competitive market?
A) There are many buyers but few sellers. B) There are many sellers but few buyers. C) There are many buyers and sellers. D) Equilibrium is achieved when demand for the product sold in the market equals the supply.
Suppose that inventories are rising. We could expect that, in the future:
A. Real GDP will likely increase B. Real GDP will likely decrease C. We can't predict what will happen to real GDP D. Firms will raise prices of their goods and services