According to the new Keynesian sticky-price theory, a rise in aggregate demand results in ________ price level in the near term and in ________ price level in the longer term
A) a higher; an unchanged
B) an unchanged; a higher
C) a lower; an unchanged
D) a lower; a higher
B
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The town of Saddle Peak has a fixed supply of mountain view lots. In this case, the price per square foot of mountain view lots is
A) determined only by demand. B) negotiated by environmental groups and property developers. C) determined only by supply. D) set by government officials of Saddle Peak.
Suppose domestic beef producers face demand of QD = 1000 - 5P. In the very short run 500 head of beef are produced. Suppose mad cow strikes a portion of the national herd and the amount brought to market falls to 400 . The price per head will rise by
a. 10 b. 30 c. 30 d. 50
Anything other than a change in the interest rate that decreases national saving shifts the supply of loanable funds to the left
a. True b. False Indicate whether the statement is true or false
Exhibit 4-7 Demand and supply schedules for movie tickets Price QuantityDemanded QuantitySupplied $10 200 500 8 240 470 6 370 420 4 390 390 2 410 310 In Exhibit 4-7, a 100 unit decrease in quantity demanded at every price level would cause the new equilibrium price to become:
A. $8. B. $6. C. $4. D. $2.