In the long run, if the prices of goods and services are higher than before the aggregate quantity:
A. demanded will be lower.
B. demanded will be higher.
C. supplied will be higher.
D. supplied will not change.
Answer: D
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Refer to the table below. What is the profit-maximizing number of resort units for Gorgeous Sands Resort during the peak period?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) 350
B) 300
C) 250
D) 200
If indirect business taxes and depreciation were added to the national income, we obtain: a. Net National product
b. Gross National Product. c. Gross Domestic Product. d. Personal Income.
Assume the government decides to reduce spending in order to reduce the budget deficit, which it financed by borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the left. b. Start the analysis in the real goods market with aggregate demand shifting to the right. c. Start the analysis in the real goods market with aggregate supply shifting to the left. d. Start the analysis in the real goods market with aggregate supply shifting to the right. e. Start the analysis in the real credit market with demand for real credit shifting to the left.
If the Fed wished to decrease GDP, it could:
A. increase the reserve requirement or conduct an open market sale. B. increase the reserve requirement or conduct an open market purchase. C. decrease the reserve requirement or conduct an open market sale. D. decrease the reserve requirement or conduct an open market purchase.