Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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In the 1800s, early agricultural activity in the U.S. used the technology of the time which was based on
(a) handwork and animal power. (b) waterpower and the steam engine. (c) the internal combustion engine and electric motor. (d) large-scale enterprises using water driven machinery.
The economy is in equilibrium, TP = TE. Then, autonomous consumption rises. As a result, __________ rises, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of goods and services they produce
A) consumption; TE; downward; fall; increase B) consumption; TE; upward; fall; increase C) consumption; TE; upward; rise; decrease D) investment; TE; upward; fall; increase E) investment; TP; leftward; fall; increase
If the exchange rate is 2 Brazilian reals per dollar and a meal in Rio costs 20 reals, then how many dollars does it take to buy a meal in Rio?
a. 40 and your purchase will increase Brazil's net exports. b. 10 and your purchase will increase Brazil's net exports. c. 40 and your purchase will decrease Brazil's net exports. d. 10 and your purchase will decrease Brazil's net exports.
In the short run
A) existing firms do NOT face limits imposed by a fixed factor of production. B) all firms have costs that they must bear regardless of their output. C) new firms can enter an industry. D) existing firms can exit an industry.