If both supply and demand decrease and the shift in demand dominates, which of the following happens?
a. The equilibrium quantity increases.
b. The equilibrium price and the equilibrium quantity decrease.
c. The equilibrium price decreases and equilibrium quantity increases.
d. The equilibrium quantity increases and the equilibrium price change is indeterminate
e. The equilibrium price increases and the equilibrium quantity decreases.
B
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"The long-run Phillips curve is vertical at the expected rate of inflation." Is the previous statement correct or incorrect?
What will be an ideal response?
A country has a growth rate of 3%. Government spending is 60 billion units of currency and its tax revenues are 32 billion units of currency. The current national debt is 400 billion units of currency. At which inflation rate is its debt-to-income ratio unchanged?
a. 2% b. 3% c. 4% d. 5%
How are unemployment rates in the United States related to education?
A. Higher levels of education are associated with lower rates of unemployment. B. Unemployment rates for high school dropouts and high school graduates are roughly equal and are less than the overall unemployment rate of college graduates. C. Higher levels of education are associated with higher rates of unemployment. D. Unemployment rates are highest for high school dropouts but are unrelated to education for anyone who has a high school degree or more. E. Unemployment rates are unrelated to education.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point F
A. is efficient and attainable. B. cannot be produced with the current state of technology. C. represents underallocation of resources. D. represents what the people want.