Suppose the equilibrium price and quantity of ketchup fall. The most likely explanation for these changes is:

A. a decrease in the demand for ketchup.
B. an increase in the supply of ketchup.
C. a decrease in the supply of ketchup.
D. an increase in the demand for ketchup.

Answer: A

Economics

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Suppose the measured unemployment rate is 4.5% and the true natural rate of unemployment is 5.1%. What should policymakers do in this situation? Suppose that the chair of the Federal Reserve believes the natural rate of unemployment to be 4.0%

What will the chair of the Fed do in this situation, and will this be a good decision?

Economics

The above figure shows the production possibility frontier for an economy. The point or points that are not attainable are

A) points B and C. B) points A, B, and C. C) point E. D) points A, B, C, and D. E) points A and D.

Economics