If the CPI equaled 1.43 in 2008 and 1.56 in 2009, then between 2008 and 2009 there was:
A. an expansion
B. a recession
C. inflation.
D. deflation
Answer: C
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A). If there is a shortage of apples, how will the equilibrium point change?
A) There will be no change in the equilibrium point. B) The equilibrium point will move from A to B. C) The equilibrium point will move from A to C. D) The equilibrium point will move from A to E.
A U.S.-imposed quota on automobiles would shift
a. both the demand and supply curves in the market for foreign-currency exchange right. b. both the demand and supply curves in the market for foreign-currency exchange right. c. only the demand curve in the market for foreign-currency exchange right. d. only the supply curve in the market for foreign-currency exchange right.
Economists believe that lower taxes should reduce unemployment because:
A. people have more incentive to be productive if the money they earn is not being taxed as much when taxes are low. B. people have more incentive to find a job, knowing they will keep more of the income they earn from the job when taxes are low. C. people will not want to miss out on the opportunity to keep more of the income they earn when taxes are lower, so they will have an incentive to keep their job and not quit. D. None of these is true.
If people wished to hold a quantity of money equal to 80% of nominal GDP, the velocity of money would be
A) 1.00. B) 1.25. C) 1.50. D) 1.75.