If climate change were to reduce the output per acre of wheat but not the output of other crops, what effect this would have on the soybean market?
A. The quantity demanded will increase and the demand will shift right.
B. The supply of soybeans will shift left and price will rise.
C. The quantity demanded of soybeans will rise and price will increase.
D. The demand for soybeans would shift right and the price and quantity would rise.
Answer: D
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Before the South Korean financial crisis, sales by the top five chaebols (family-owned conglomerates) were
A) nearly 50% of GDP. B) about 10% of GDP. C) almost 90% of GDP. D) nearly 25% of GDP.
In the aggregate demand-aggregate supply model in the short run, a decrease in the money supply is likely to cause a(n): a. increase in both the price level and real GDP
b. decrease in both the price level and real GDP. c. increase in real GDP and a decrease in the price level. d. decrease in real GDP and an increase in the price level. e. increase in the price level only.
Which of the following statements is correct?
a. The interest rate that is usually reported is the interest rate that has been corrected for inflation. b. The supply of, and demand for, loanable funds depend on the real (rather than nominal) interest rate. c. If the nominal interest rate has decreased and the real interest rate has also decreased, then the inflation rate must have decreased as well. d. All of the above are correct.
The portion of aggregate expenditure that is independent of output is called ________ expenditure.
A. actual B. potential C. autonomous D. planned