Sophia (Macroeconomics) - Unit 2 Milestone questions well solved

Sophia (Macroeconomics) - Unit 2 Milestone questions well solvedWhich statement below regarding aggregate demand is true? It expresses an inverse relationship between price level 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. 00:48 01:16 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 00:02 01:16 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