All else held constant, increased U.S. exports to nations in the European Union create a ________.
A. demand for euros
B. shortage of euros
C. supply of euros
D. surplus of euros
Answer: C
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. Area BC would be transferred to the consumer.
B. Area BCD would be transferred to the producer.
C. Area BCD would be transferred to the consumer.
D. Area BC would be transferred to the producer.
Above-equilibrium wages caused by efficiency wages will most likely result in
a. a shortage of labor. b. increased unemployment. c. compensating wage differentials. d. an decrease in the quantity of labor supplied.
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). In the Application, Anil Kasyap found that in periods of high inflation:
A. prices tended to change more frequently. B. prices tended to change less frequently. C. prices do not change at all. D. prices change equally as often as during periods of low inflation.