Adjustment process in a competitive market

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Reference no: EM136788

Q1. Between the first quarter of 2005 and the fourth quarter of 2006, the CPI increased by 7 percent, while the GDP deflator increased by 4 percent. Assuming our interest is the entire economy, from this we can infer.

Q2. Assume the current market price of candles is such that there is a surplus (i.e., excess supply), which of the following best describes the adjustment process in a competitive market?

Q3. As a percentage of GDP, US exports are? greater than US imports; about 20 %; considerably lower than in several other industrial nations; higher than in Canada but lower than Germany.

Reference no: EM136788

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