A price floor above the equilibrium price increases the total surplus of the market.
Answer the following statement true (T) or false (F)
False
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The gold standard probably made the Great Depression more severe in the United States because
A) the value of gold declined sharply during those years. B) the existence of the gold standard kept prices from falling. C) the money supply in the United States increased rapidly as gold flowed into the country. D) the Fed attempted to reduce gold outflows by raising the discount rate.
In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, expansionary fiscal policy does all of the following EXCEPT:
a. increase interest rates. b. increase income. c. increase the IS curve. d. increase inflation.
Within an occupation, when a given job provides steadier work (fewer layoffs), the hourly wage tends to be
a. no different from wage rates in jobs that are otherwise similar. b. lower than wage rates in jobs that are otherwise similar. c. higher than wage rates in jobs that are otherwise similar. d. determined by factors other than supply and demand.
For a given increase in supply, the condition of demand that will result in the most significant change in price is when demand is
A. inelastic. B. elastic. C. perfectly elastic. D. perfectly inelastic.