Perfect planting and harvesting weather results in a record high crop of wheat. If wheat growers experience an increase in total sales revenue, then the demand for wheat must be
a. price-inelastic
b. unitary elastic
c. perfectly inelastic
d. price-elastic
e. perfectly elastic
A
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In the above figure, the equilibrium level of labor is
A) 100 billion hours. B) 150 billion hours. C) 200 billion hours. D) none of the above
In the long run in a perfectly competitive market:
A. supply is perfectly elastic when all firms have the same cost structure. B. firms operate at an efficient scale. C. firms earn zero economic profits. D. All of these are true.
If at a particular price level, real output from producers is greater than real output desired by purchasers, then there will be a general:
A. Surplus and the price level will rise B. Surplus and the price level will fall C. Shortage and the price level will rise D. Shortage and the price level will fall
Hypothetical economy: C=$600 billion, I=$300 billion, G=$150 bill Assume for the long run: 1. For every 1% increase (decrease) in interest rate, planned investment decreases (increases) by $5 billion. 2. For every $10 billion increase (decrease) in government spending, interest rate increases (decreases) by 1%. 3. The MPC = 0.8 Assuming the economy is in equilibrium, how much is equilibrium output?
A) $750 billion. B) $900 billion C) $1,050 billion D) $1,350 bill