When the economy is in a recession, the Fed can ________ the federal funds rate, which ________ aggregate demand and ________ real GDP
A) lower; increases; decreases
B) raise; decreases; increases
C) lower; increases; increases
D) raise; increases; decreases
E) lower; decreases; decreases
C
Economics
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If both the demand for a product and the supply of it decrease, then the equilibrium quantity will ________ and the equilibrium price will ________.
A) increase; either increase, decrease, or remain constant B) decrease; either increase, decrease, or remain constant C) increase; increase D) increase; decrease
Economics
Figure 17-12
If the country illustrated in is initially trading without restrictions at a world price of $1.00, the government revenue from a tariff of $0.50 per unit is represented by area
a.
c
b.
e + g
c.
i + e + f
d.
d + e
e.
e
Economics