What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties, and fewer used textbooks are sold?
a. Price will rise.
b. Price will fall.
c. Price will stay exactly the same.
d. The price change will be ambiguous.
d
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The entire sequence of a decline in aggregate economic activity followed by recovery, measured from peak to peak or trough to trough is a
A) long-run trend. B) potential output path. C) business cycle. D) recurrent comovement.
A movement along a supply curve is induced by a change in
A) input prices. B) taxes and subsidies. C) price expectations. D) the product's own price.
Because of automatic stabilizers, government budget deficits are
a. positive during both expansions and contractions. b. negative during both expansions and contractions. c. zero if averaged out over the entire business cycle. d. larger during expansions and smaller during contractions. e. smaller during expansions and larger during contractions.
The Coase Theorem works because the negotiation
A. makes neither party better off. B. makes both parties better off. C. makes the party with the property rights better off. D. makes both parties equally better off.