Which of the following would most likely cause the price of wheat to decline?
a. an increase in the production costs of corn, a substitute for wheat
b. a decrease in the price of soybeans, a substitute for wheat
c. an increase in the price of fertilizer, a resource used to produce wheat
d. a sandwich craze among Americans, causing increased demand for whole-wheat bread
B
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Refer to Scenario 1. What is the t-statistic for the slope coefficient?
A) 3.04 B) 0.94 C) 0.30 D) 4.46
If Y and M are constant and V doubles, the quantity equation implies that the price level
a. falls to half its original level. b. doubles. c. more than doubles. d. does not change.
Refer to the information provided in Table 23.9 below to answer the question(s) that follow. Table 23.9
Refer to Table 23.9. If aggregate output equals ________, there will be a $20 billion unplanned decrease in inventories.
A. $100 billion B. $200 billion C. $300 billion D. $400 billion
Suppose that the economy has a structural deficit of $100 billion and a budget deficit of $100 billion. It follows that output:
A. must be below its potential output. B. could be at, above, or below potential output. C. must equal potential output. D. must be above potential output.