The first step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.
b. decide whether the economic change being analyzed affects demand or supply.
c. draw a demand and supply model before the economic change took place.
d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
c. draw a demand and supply model before the economic change took place.
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Microeconomics focuses on:
A.) Full employment, price stability, and economic growth. B.) The behavior of individuals, firms, and government agencies. Land, labor, and capital. Centrally planned economies.
The firm's short-run costs contain
A) only variable costs. B) only fixed costs. C) both variable and fixed costs. D) only opportunity costs.
The movement to set up a central bank in the United States was spurred by the financial panic that occurred in
A) 1816. B) 1907. C) 1929. D) 1987.
Other things equal, an adverse supply shock would
a. Shift SRAS left b. Shift LRAS left c. Shift AD left d. Do all of the above