### New Technology, Equilibrium Price, Equilibrium Quantity, Principles of Macroeconomics Exam

The key terms in this Principles of Macroeconomics course include New Technology, Equilibrium Price, Equilibrium Quantity, Normal Good, Gross Domestic Product (GDP), Real Gross Domestic Product (GDP) – Base Year Prices × Current Output, Principles of Macroeconomics Exam

After a new technology is introduced, the price typically falls. What is a possible explanation for this?

Fewer people purchase the product.

More people purchase the product and more firms produce the product.

More people purchase the product.

More firms produce the product.

Fewer people purchase the product and fewer firms produce the product.

Something is a normal good if the demand for the good

increases if the price of a complement good increases.

decreases as the income of the consumer increases.

increases as the consumer’s income increases.

increases as the consumer’s income decreases.

decreases if the price of a substitute good increases.

What happens to the equilibrium price and equilibrium quantity of a good if both the producers and the consumers of that good expect its price to be higher in the future?

The equilibrium price will go down and equilibrium quantity will be indeterminate.

The equilibrium price will go up and other one will go up.

The equilibrium price will be indeterminate and equilibrium quantity will go up.

The equilibrium price will be indeterminate and equilibrium quantity will go down.

The equilibrium price will go up and equilibrium quantity will be indeterminate.

If nominal gross domestic product (GDP) is declining but production is rising, then it must be the case that

prices must be increasing more rapidly than production.

production is rising at a greater rate than prices are falling.

prices must be lower on average.

fewer goods and services are being produced.

prices are falling at a greater rate than production is rising.

Real gross domestic product (GDP) is equal to

current output / base year prices.

base year prices × current output.

base year prices × base year output.

current prices × base year output.

current prices × current output.

After a new technology is introduced, the price typically falls. What is a possible explanation for this?

Fewer people purchase the product.

More people purchase the product and more firms produce the product.

More people purchase the product.

More firms produce the product.

Fewer people purchase the product and fewer firms produce the product.

Something is a normal good if the demand for the good

increases if the price of a complement good increases.

decreases as the income of the consumer increases.

increases as the consumer’s income increases.

increases as the consumer’s income decreases.

decreases if the price of a substitute good increases.

What happens to the equilibrium price and equilibrium quantity of a good if both the producers and the consumers of that good expect its price to be higher in the future?

The equilibrium price will go down and equilibrium quantity will be indeterminate.

The equilibrium price will go up and equilibrium quantity will go up.

The equilibrium price will be indeterminate and equilibrium quantity will go up.

The equilibrium price will be indeterminate and equilibrium quantity will go down.

The equilibrium price will go up and equilibrium quantity will be indeterminate.

If nominal gross domestic product (GDP) is declining but production is rising, then it must be the case that

prices must be increasing more rapidly than production.

production is rising at a greater rate than prices are falling.

prices must be lower on average.

fewer goods and services are being produced.

prices are falling at a greater rate than production is rising.

Real gross domestic product (GDP) is equal to

current output / base year prices.

base year prices × current output.

base year prices × base year output.

current prices × base year output.

current prices × current output.