Refer to the diagram and assume the economy is operating at equilibrium point w. In the short run, a decrease in the price level from P 2 to P 1 would move the economy from point w to point:
A. v.
B. x.
C. t.
D. y.
A. v.
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Refer to Table 19-2. Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Using the information in the above table, nominal GDP for this simple economy equals
A) $7,400. B) $6,400. C) $5,800. D) 2,440 units.
Which of the following tax structures creates a disincentive to earn more?
a. Proportional tax structure b. Regressive tax structure c. Digressive tax structure d. Progressive tax structure e. A combination of proportional and regressive tax structure
The table above gives data for the nation of? Pearl, a small island in the South Pacific. If aggregate demand increases so that the quantity of real GDP demanded is? $6 billion more at each price? level, the new equilibrium real GDP is
A) $34 billion.
B) $31 billion.
C) $28 billion.
D) $25 billion.
E) $23 billion.
Tony's Taco Casa has total revenue of $12,500. It has total fixed costs of $2,400 and total variable costs of $4,600. Tony's Taco Casa's profit is
A. $2,200. B. $5,500. C. $7,900. D. $10,100.