When comparing partial equilibrium effects to general equilibrium effects one can conclude that
A) general equilibrium effects are always larger.
B) partial equilibrium effects are always larger.
C) the effects are of equal size.
D) one cannot determine before the fact which effect is greater.
D
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Refer to Table 4-7. Suppose that the quantity of labor supplied decreases by 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.50; Q = 550,000 B) W = $11.50; Q = 610,000 C) W = $12.50; Q = 550,000 D) W = $8.50; Q = 630,000
The function of the interest rate in the Classical model was to keep the economy at full employment equilibrium by assuring that
A) actual saving equaled actual investment. B) actual saving equaled desired investment. C) desired saving equaled desired investment. D) desired saving equaled actual investment.
A bond can be: a. partial ownership in a corporation
b. a debt obligation of a company. c. a debt obligation of a government or government agency. d. both B and C above
When the money supply declined by approximately 30 percent during the 1929 through 1933 period,
a. real output increased. b. the general level of prices increased. c. the velocity of money increased by a proportional amount. d. unemployment increased.