Firms in a small economy anticipated that inventories would grow over the past year by $750,000, and over that year, inventories grew by exactly $750,000. This implies that
A) aggregate expenditure was greater than GDP that year.
B) there was an unplanned decrease in inventories that year.
C) there was an unplanned increase in inventories that year.
D) aggregate expenditure and GDP were equal that year.
D
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The above figure gives your budget line between CDs and magazines. The slope of the budget line is ________ CD per magazine
A) 1/2 B) -1/2 C) -1 D) -2
Assume the market for cage-free eggs is perfectly competitive. All else equal, as more farmers choose to produce and sell cage-free eggs, what is likely to happen to the equilibrium price of the eggs and profits of these farmers in the long run?
A) The equilibrium price is likely to remain unchanged and profits are likely to increase. B) The equilibrium price is likely to decrease and profits are likely to decrease. C) The equilibrium price is likely to increase and profits are likely to increase. D) The equilibrium price is likely to increase and profits are likely to remain unchanged.