When a price ceiling is imposed below the equilibrium price of a commodity,
a. quantity supplied will be greater than quantity demanded for the good.
b. the problem of scarcity will be solved.
c. a shortage of the good will develop.
d. a surplus of the good will develop.
C
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Many government programs, such as unemployment compensation, operate on a deficit during recessions and a surplus during periods of economic expansion. The programs are referred to as
A) discretionary fiscal policy. B) automatic stabilizers. C) Ricardian equivalence. D) Recognition time lag.
Using Figure 1 below, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y3.
D. P2 and Y2.
A price floor set above the equilibrium price causes a surplus in the market
a. True b. False Indicate whether the statement is true or false
In this graph, how does the expansionary policy influence short run aggregate supply?
a. It prevents the short run aggregate supply curve from moving.
b. It shifts the short run aggregate supply curve to the left.
c. It shifts the short run aggregate supply curve to the right.
d. It changes the slope of the short run aggregate supply curve.