If short-run equilibrium GDP is above potential GDP, prices will eventually rise
a. True
b. False
Indicate whether the statement is true or false
True
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The majority of people living in colonial America in 1790 were of African origins
Indicate whether the statement is true or false
Which of the following will shift the supply curve for laptop computers to the left?
A) development of a cheaper microchip used in laptop computer production B) a subsidy to the laptop computer industry C) expectations of a future decline in laptop computer prices D) a reduction of the number of firms that make laptop computers
Most economists use the aggregate demand and aggregate supply model primarily to analyze
a. short-run fluctuations in the economy. b. the effects of macroeconomic policy on the prices of individual goods. c. the long-run effects of international trade policies. d. productivity and economic growth.
Use the following table to answer the next question.Interest RateAsset Demand for Money (billions)7%$0610052004300If the money supply equals $300 billion dollars and the transaction demand for money equals $200 billion dollars, the equilibrium interest rate is
A. 6%. B. 7%. C. 4%. D. 5%.