A surplus will cause pressure on the price to fall.
a. true
b. false
Ans: a. true
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If the supply curve illustrates the quantities producers plan to sell at given prices, and the demand curve illustrates the quantities consumers plan to buy at given prices, then the plans of producers and consumers are fully coordinated at the point
where A) the supply curve lies above the demand curve. B) the supply curve intersects the demand curve. C) the demand curve lies above the supply curve. D) the amount of a good needed by consumers exactly equals the amount supplied by producers.
Public choice theory suggests that politicians will be most likely to favor redistribution of income from
a. the rich to the poor. b. unorganized taxpayers to well-organized interest groups. c. well-organized business groups to consumers. d. none of the above.
Just after the terrorist attack on September 11, 2001, the Fed stood ready to lend financial institutions funds. When the Fed did this, it was acting in its role of lender of last resort
a. True b. False Indicate whether the statement is true or false
A decrease in the marginal tax rate on asset income in the short run in the market clearing model:
a. raises change the stock of capital b. increases gross investment. c. increases real GDP. d. all of the above.