Suppose demand decreases and supply decreases. Which of the following will happen?
a. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease.
b. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase
c. Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.
d. Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease.
e. The change in equilibrium price and quantity cannot be determined.
A
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Many economists who accept the real business cycle explanations of economic fluctuations
a. believe that the sharp rise in the relative price of imported oil was the central cause of the deep recession in the United States in the mid-1970s. b. believe that the restrictive Federal Reserve monetary policy was the central cause of the deep recession in the United States in the mid-1970s. c. believe that the sharp rise in the relative price of imported oil was not the main cause of the deep recession in other industrialized nations in the mid-1970s. d. both a and c. d. None of the above
The expenditure method dictates that GDP is equal to C + I + G + (X M)
a. True b. False Indicate whether the statement is true or false
Economists have found that the price elasticity of demand for water is higher in the summer than in the winter. Why is this likely to be so?
A. Summer is longer than winter, and price elasticity is higher over longer time horizons. B. People take more vacations in the summer and so use less water at home. C. Winter water use tends to be for necessities such as cleaning and cooking, and summer water use tends to be for both necessities and non-necessities such as gardening and recreation. D. Winter is longer than summer, and price elasticity is lower over longer time horizons.
Economists should consider? ________ when evaluating options.
A) only explicit costs and benefits
B) only implicit costs and benefits
C) both explicit and implicit costs and benefits
D) neither explicit nor implicit costs and benefits