When the demand for coffee increases, ceteris paribus, the equilibrium price will also increase because
A. A shortage exists at the old equilibrium price.
B. The market supply and demand curves do not intersect.
C. Market demand must be upward-sloping.
D. There must be a surplus of the good.
Answer: A
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Nominal GDP in a country was $8759.9 billion in 2014 and $9254.6 billion in 2015. The GDP deflator was 102.86 for 2014 and 104.37 for 2015
(a) What is the growth rate of nominal GDP between 2014 and 2015? (b) What is the inflation rate from 2014 to 2015? (c) What is the growth rate of real GDP from 2014 to 2015?
This year an economy produced 3,700 coats, 3,000 shoes and 2,000 socks. The price of coats was €50, the price of socks was €3.50 and the price of shoes was €70. In the base year, prices were 10% lower. Nominal GDP was:
(a) €361,800; (b) €402,000; (c) €420,000; (d) Cannot be computed.