The apple market is perfectly competitive and is in long-run equilibrium. Now a disease kills 50 percent of the apple orchards. In the short run, the price of a bag of apples ________ and the remaining apple growers make ________ economic profit
In the long run, the ________. A) increases; zero; price of apples will return to their original level
B) remains the same; zero; orchards will be replanted and growers will make normal profits
C) increases; zero; orchards will be replanted and economic profit will return to zero
D) increases; positive; orchards will be replanted and economic profit will return to zero
D
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In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
The country of Elbia has a GDP of $2,000 . consumption of $1,300, and government purchases of $400 . Which of the following is equal to $300?
a. domestic investment b. domestic investment plus net capital outflow c. domestic investment minus net capital outflow d. None of the above is correct.