If we are on the upper portion of the market demand curve (above the midpoint) and the price increases by 10%, the quantity demanded will decrease by more than 10%.
Answer the following statement true (T) or false (F)
True
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Suppose that an economy's labor became more productive between year 1 and year 2. We could conclude that this economy's
A. real GDP remained constant. B. production possibilities frontier shifted outward. C. production possibilities frontier shifted inward. D. capital stock increased by 3%.
In the very short run ________
A) the real interest rate will be affected by changes in the nominal rate B) monetary policy has an immediate effect on inflation C) the inflation rate is determined by the federal funds rate D) all of the above E) none of the above
Other things being equal, an increase in U.S. interest rates would be likely to cause an increase in the capital account surplus or a decrease in the capital account deficit
a. True b. False Indicate whether the statement is true or false
A government payment to producers for the difference between a target price and the price at which producers were able to sell their goods is known as a: a. subsidy
b. deficiency payment. c. producer surplus. d. price support.