Resource prices will fall and short-run aggregate supply will increase if
a. current output exceeds the economy's full-employment level.
b. current output is less than the economy's full-employment level.
c. the actual rate of unemployment is less than the natural rate of unemployment.
d. exports exceed imports.
B
Economics
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Refer to the figure above. The quota restricts trade by the same amount as a tariff of
A) $20. B) $30. C) $50. D) Cannot answer without more information.
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Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 20 units of clothing but no food. Suppose each has the utility function U = F ? C. The price of clothing is always $1
If the price of food is $3, does a competitive equilibrium exist? If not, what will happen to the price of food?
Economics