The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5. If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then domestic price of the car will be ________.
A. $8,000
B. $6,000
C. $5,000
D. $10,000
Answer: A
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Which of the following monetary policies could reduce the amplitude of oscillations of output around its natural level?
A) raising interest rates before actual output attains its natural level B) lowering interest rates when an economy is still overheated C) lowering interest rates when output is above its natural level D) all of the above.
Economic growth is:
A. an increase in our economy's potential output. B. represented by the long-run aggregate supply curve shifting to the right. C. a result of having more natural resources, land or capital. D. All of these are true.
A decrease in the supply of a good will result in a rightward shift in the demand curve for the good
a. True b. False Indicate whether the statement is true or false
Most economists have reached the following conclusion about supply-side economics.
A. Supply-side tax cuts are likely to reduce income inequality. B. Supply-side tax cuts are almost certain to lead to smaller budget deficits. C. Supply-side tax cuts are likely to widen income inequality. D. None of these.