A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
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If the price of prime rib falls, the income effect due to the price change will cause
A) an increase in the quantity of prime rib supplied. B) an increase in the demand for prime rib. C) an increase in the demand for flank steak, a substitute for prime rib. D) an increase in the quantity of prime rib demanded.
If there are no unintended changes in inventories, the economy is at its equilibrium level of real gross domestic product (GDP) demanded
a. True b. False Indicate whether the statement is true or false
In cases of natural monopoly, it is best to have only one firm producing all of the output in a market
a. True b. False Indicate whether the statement is true or false
High benefit payments to unemployed workers will tend to increase the rate of unemployment
a. true b. false