An important cause of recessions is an unexpected negative supply shift, such as higher oil prices.
Answer the following statement true (T) or false (F)
True
A significant cause of recessions is an unexpected negative supply shift, which moves the supply curve to the left for a broad array of markets. The classic example of such a negative shock is a sudden rise in the price of oil.
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Refer to Figure 4-3. If the market price is $3.50, what is the consumer surplus on the first ice cream cone?
A) $0 B) $0.50 C) $3.50 D) $9.00
The income effect of a price change is:
A. always consistent with the Law of Demand. B. never consistent with the Law of Demand. C. consistent with the Law of Demand only for normal goods. D. consistent with the Law of Demand only for inferior goods.
The Federal Reserve's narrowest definition of the money supply is
A) M0. B) M1. C) M2. D) M3.
In which of the following countries does health insurance not pay for most preventive care procedures?
A) Canada B) Japan C) the United Kingdom D) the United States