Along the short-run supply curve (SRAS), a decrease in the aggregate demand curve will decrease:
A. both the price level and real GDP.
B. real GDP without raising the price level.
C. the price level without affecting real GDP.
D. the price level but increase real GDP.
Answer: A
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Figure 4.4 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from
A) point a to point b. B) point c to point b. C) S0 to S1. D) S2 to S1.
Refer to Table 9-11. Prior to trade, what was the opportunity cost to produce 1 clock in Denmark?
A) 1/6 of a hat B) 1/2 of a hat C) 2 hats D) 6 hats
In regression analysis, the dependent variable
A) is always quantity demanded. B) is the variable whose variation is to be explained. C) is one of the factors that explains what is happening with demand. D) is represented by the inverse demand function.
A good economic theory: a. rests on realistic assumptions
b. explains economic behavior and predicts well. c. can best be expressed mathematically. d. always provides a highly detailed analysis of an economic sector.