Macroeconomics > QUESTIONS & ANSWERS > Sophia (Macroeconomics) - Unit 2 Milestone Questions and Answers Already Passed (All)

Sophia (Macroeconomics) - Unit 2 Milestone Questions and Answers Already Passed

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Sophia (Macroeconomics) - Unit 2 Milestone Questions and Answers Already Passed Which statement below regarding aggregate demand is true? ✔✔It expresses an inverse relationship between price l ... evel and RGDP. If demand becomes more elastic, which of the following will happen, as demonstrated by the graph shown here? ✔✔The incidence of the subsidy on the consumer will decrease. Select the statement below that is true of long run aggregate supply curves. ✔✔There is no relationship between price level and RGDP. If an excise tax is imposed on a product, which of the following will happen? ✔✔The supply curve will shift upward by the amount of the tax. Based on the graph above, if market price is $19 per unit, what is happening at that market price? ✔✔Price is at equilibrium. The people of a certain Mediterranean village always eat salad with balsamic vinegar and olive oil as dressing. If the olive crop fails one year because of a terrible storm, what most likely would happen to the demand for balsamic vinegar that the people of this village purchase? ✔✔The demand for balsamic vinegar purchased will decrease because it is a complement to olive oil. What economic rule is generally used in the decision of a regulator to impose a binding price constraint? ✔✔When the benefit to a specific group of people is greater than deadweight loss When an economy is producing to the left of the LRAS, __________. ✔✔expansionary fiscal policies can be put in place Which of the following would NOT cause a shift in the supply curve for cheese? ✔✔The results of a medical study show that eating too much cheese can lead to premature aging. Select the statement below that is true of ONLY price ceilings. ✔✔Can create a shortage of product Which statement below about producer surplus is NOT true? ✔✔Producer surplus is basically the same as profit. Laura is willing to pay as much as $1,000 for a wedding dress but is happy to find one she likes that costs $300. Select the term below that corresponds to this situation. ✔✔Consumer surplus Which of the following is true about a market at equilibrium price? ✔✔At the prevailing price, there is no market basis for the price to change. Which of the following will cause movement along the demand curve? ✔✔The market price of a pound of beef increases from $5 to $7. If the market price for fast food wages is $7 per hour, at which wage level would a price floor be binding? ✔✔$15 [Show More]

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