If the economy is currently in equilibrium at a level of GDP that is above potential GDP, which of the following would move the economy back to potential GDP?
A) a decrease in interest rates
B) a decrease in wealth
C) a decrease in the value of the dollar relative to other currencies
D) an increase in business confidence
B
Economics
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State the law of supply and explain it
What will be an ideal response?
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Consider the market for nonalcoholic beers from the previous question. Which of the following is the Bertrand reaction function for Cudweiser?
a. PC = 1 + .033PB b. PC = 1 - .033PB c. PC = 1.5 + .075PB d. PB = 1.5 + .075PC
Economics