A sudden rise in the market demand in a competitive industry leads to
a. A short run market equilibrium price lower than the original equilibrium
b. A market equilibrium lower than the short run price
c. Some firms exiting the market
d. All of the above
b
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Suppose that there is a current account deficit of $250 billion and a capital account surplus of $260 billion. It may be concluded that the
A) overall balance of payments is +10. B) overall balance of payments is -10. C) official reserve transaction account balance is +10. D) official reserve transaction account balance is -10.
Answer the following statement(s) true (T) or false (F)
1. The long-run equilibrium level is where the economy will settle when undisturbed. 2. Changes in the stock of capital will alter the amount of goods and services the economy can produce. 3. In recent history, computers and specialized software shifted the short-run aggregate supply curve leftward. 4. Japan’s aging workforce has shifted that nation’s long-run aggregate supply curve rightward. 5. The short-run equilibrium level of real output and the price level are given by the intersection of the aggregate demand curve and the short-run aggregate supply curve.