A supply curve that is parallel to the horizontal axis suggests that:
A. the industry is organized monopolistically.
B. the relationship between price and quantity supplied is inverse.
C. a change in demand will change price in the same direction.
D. a change in demand will change the equilibrium quantity but not price.
Answer: D
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For a country already engaged in trade, biased growth will essentially lead to an increased willingness to trade.
Answer the following statement true (T) or false (F)
Refer to Table 9.2. (Data are expressed in billions of dollars.)Table 9.2Full Employment Income (Output)Consumers Desire to SpendInvestors Desire to SpendTotal Private SpendingTotal Saving$500$300$250$________$________600375250$________$________700450250$________$________800525250$________$________If the full-employment level of income (YF) in Table 9.2 is $700 billion,
A. There is an inflationary gap of $450 billion. B. There is an inflationary gap of $700 billion. C. The economy is in equilibrium. D. There is a recessionary gap of $250 billion.