How much is a bond worth today if it pays $50 in coupon payments for 3 years and $1,000 at the end of the third year, and the interest rate is 10%?

A recession is best defined as a period during which: a. the percentage of the population employed increases. b. employment, output, and income decrease

c. the average price level in an economy decreases. d. the usage of labor and capital resources increases. e. budget deficit and trade deficit decrease.

A competitive market is in long-run equilibrium. If demand decreases, we can be certain that price will

a. fall in the short run. All firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. b. fall in the short run. No firms will shut down, but some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. c. fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. d. not fall in the short run because firms will exit to maintain the price.