Suppose an economy is initially in equilibrium and there is a sudden increase in oil prices. Which of the following is the most likely result?
a. Growth in real GDP
b. Price stability
c. Full employment output
d. Stagflation
e. Deflation
d
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The problems of inflation and unemployment are
A. only relevant to European economies. B. not relevant to the U.S. economy. C. major topics of microeconomics. D. major topics of macroeconomics.
Changes in the health of the average person are an important indicator of changes in the standard of living
Indicate whether the statement is true or false
Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics?
a. college tuition rates b. farm subsidies c. national income d. automobile prices e. air traffic congestion f. economic recession
Econville opens up trade with its neighboring countries. This causes the number of sellers of science fiction novels to increase. What happens to the equilibrium price and quantity?
a. Price and quantity both increase. b. Price decreases, and quantity increases. c. Price increases, and quantity decreases. d. Price and quantity both decrease.