A drop in output demand accompanied by a simultaneous drop in output supply will cause the output price to fall.
Answer the following statement true (T) or false (F)
False
Rationale: It could, but it might also cause an increase in output price. This is because the drop in demand puts downward pressure on price while the drop in supply puts upward pressure on price.
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Which of the following is likely to happen if the Fed conducts a contractionary monetary policy?
A) Labor demand will increase. B) The nominal interest rate will decrease. C) The stock of money in the economy will decrease. D) Banks will make more loans.
Discuss the link between real GDP and imports
What will be an ideal response?
An organic food manufacturing company has been advertising widely against the consumption of inorganic food. This is an example of ________
A) backward induction B) indoctrination C) anchoring D) sniping
An editorial in a newspaper calling for the government to abolish the minimum wage because it takes advantage of consumers is an example of a(n)
a. positive economic statement. b. pure economic statement. c. normative economic statement. d. abstract economic statement.