According to Ricardo's explanation of land rent, what happens when the demand for land increases?
A) The supply curve shifts to the right just enough to keep the price per acre constant.
B) Revenues to owners of land increase but economic rent declines.
C) The amount of economic rent stays constant, constrained by a perfectly inelastic supply curve.
D) Both revenues to owners of land and economic rent increase.
D
Economics
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Free trade is viewed as key to economic development because
A) it encourages a faster spread of technology. B) it encourages a country's exports only. C) it brings in expensive new technology. D) none of the above is correct.
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Using the concepts of aggregate demand and aggregate supply, explain how the economy reaches an equilibrium level of real GDP and price level
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