This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Consider an economy in equilibrium, and assume no change in aggregate demand. An earthquake that ... (Read 55 times)

ts19998

  • Hero Member
  • *****
  • Posts: 531
on: Jun 30, 2018
Consider an economy in equilibrium, and assume no change in aggregate demand. An earthquake that destroys many factories across the country would result in a(n):
 a. increase in the average price level and a decrease in real GDP.
  b. increase in the average price level and no change in real GDP.
  c. increase in the average price level and an increase in real GDP.
  d. decrease in the average price level and an increase in real GDP.
  e. decrease in the average price level and a decrease in real GDP.

Question 2

To assess whether or not a good is normal or inferior, economists are interested in the cross price elasticity of demand.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kthug

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

False


ts19998

  • Member
  • Posts: 531
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

blakcmamba

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Donald Trump and Climate Change Donald Trump and Climate Change
The More Things Change, The More They Say the Same: Dividing the Nation's Income The More Things Change, The More They Say the Same: Dividing the Nation's Income
The change in the net of an irradiance, in Wm-2, at the tropopause The change in the net of an irradiance, in Wm-2, at the tropopause
China has relied on cheap coal to meet its demand for energy China has relied on cheap coal to meet its demand for energy
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Kinesthesis and Equilibrium Kinesthesis and Equilibrium
Video: Chemical Changes

For a complete list of videos, visit our video library