In a competitive market, a decrease in consumer demand leads to
a. a decrease in output
b. an increase in output
c. economic profits
d. higher prices
e. technological innovation
A
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The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 3.2 percent B) 1.8 percent C) 4.6 percent D) -3.2 percent E) -1.8 percent
If country A produces S at a lower relative price than country B, A is said to have a comparative advantage in S
Indicate whether the statement is true or false
Which of the following represents in-kind income?
a. food stamps b. a public housing subsidy c. a school lunch program d. all of the above
If countries that imported goods and services from the United States went into recession, we would expect that U.S. net exports would
a. rise, making aggregate demand shift right. b. rise, making aggregate demand shift left. c. fall, making aggregate demand shift right. d. fall, making aggregate demand shift left.