Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher
B. higher; potential
C. lower; higher
D. lower; potential
Answer: B
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Indicate whether the statement is true or false
Suppose a sushi restaurant is making significant economic profit in the short run. In the long run
A) more people will open sushi restaurants, reducing the economic profit for each restaurant. B) high barriers to entry keep people from opening sushi restaurants. C) the government will require the sushi restaurant to sell part of its interests in the city. D) more people will open steak restaurants, increasing the economic profit for the sushi restaurant.
Suppose that at the equilibrium price and quantity, the marginal revenue is ?$15 and the price elasticity of demand for a linear demand function is ?0.75. Then we know that the equilibrium price is:
A. ?$45. B. $45. C. ?$5. D. $5.
When housing prices fell as they did beginning in 2006 following the housing market bubble, most banks and other lenders ________ the requirement for borrowers, making it ________ for potential home buyers to obtain mortgages
A) tightened; easier B) tightened; harder C) eased; easier D) eased; harder