When the economy's actual price level exceeds the expected price level in the short run, _____
Fill in the blank(s) with the appropriate word(s).
the nominal wages of workers decline.
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The above table gives the demand and supply schedules for cat food. If the price is $1
00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?
Suppose Japan has a comparative advantage over Canada in the production of DVDs. This means that Japan:
a. needs fewer resources to produce DVDS than does Canada. b. has better technology for producing DVDs than does Canada. c. has a lower opportunity cost of DVD production than does Canada. d. can produce more DVDs in a given period of time than can Canada.