Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity. What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower levels of bad
cholesterol?
A) D increases, S no change, P and Q increase.
B) S increases, D no change, P decreases, Q increases.
C) D and S increase, P and Q decrease.
D) D no change, S increases, P decreases, Q decreases.
Answer: A
Economics
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If there is a change in the U.S. endowment of factors of production, then there would be
A) shifts in just SRAS. B) a movement along the SRAS curve. C) a shift in both LRAS and SRAS. D) a shift in just LRAS.
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Suppose that the price level is 5, money supply is 10 trillion dollars, velocity of money is 4. What is the value of real GDP?
A. $2 trillion B. 8 trillion C. 6 Trillion D. 10.25 trillion E. None
Economics