When the government controls the price of a product, causing the market price to be below the free market equilibrium price,
A) some consumers gain from the price controls and other consumers lose.
B) all producers gain from the price controls.
C) both producers and consumers gain.
D) all consumers are better-off.
A
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Equilibrium in a market occurs when
A) demand and supply indicate a small surplus of a good. B) price is at its minimum. C) quantity supplied and quantity demanded are equal at the market clearing price. D) the market price leads to a decrease in quantity demanded.
A decrease in the required reserve ratio would be
a. a restrictive policy because it lowers the amount of total reserves in the banking system. b. a restrictive policy because it lowers the amount of excess reserves in the banking system. c. an expansionary policy because it raises the amount of required reserves in the banking system. d. an expansionary policy because it raises the amount of total reserves in the banking system e. an expansionary policy because it raises the amount of excess reserves in the banking system.
In New Keynesian macroeconomics, when marginal costs are too sticky to change in proportion to nominal aggregate demand, prices ________ and so menu costs ________ needed to explain business cycles
A) are also sticky, are B) are also sticky, are not C) are still perfectly flexible, are D) are still perfectly flexible, are not
If exports rise and imports fall, then:
a. GDP will increase. b. GDP will decrease. c. GDP may remain unchanged. d. net exports will fall. e. transfer will rise.