When necessary, a higher price will simultaneously ________ the quantity supplied and ________ the quantity demanded, thus reducing the amount of excess ________.
A. decrease; increase; supply
B. decrease; increase; demand
C. increase; decrease; demand
D. increase; decrease; supply
Answer: C
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A restaurant purchases a package of sandwich buns for 50 cents. The buns are ________ good in this case, and thus its purchase ________ a transaction that is included in GDP
A) a final, is B) a final, is not C) an intermediate, is D) an intermediate, is not
Under the adaptive expectations theory, people persistently
a. underestimate inflation when it is slowing down. b. overestimate inflation when it is accelerating. c. underestimate inflation when it is accelerating. d. adapt to the prevailing inflation rate quickly.
How will a cut in a fixed tax affect the consumption schedule?
A. It will shift downward. B. It will shift upward. C. It will become flatter. D. It will become steeper.
How is the market for gasoline affected if the excise tax on gasoline is reduced?
A. The equilibrium quantity of gasoline decreases. B. The supply of gasoline increases. C. The equilibrium price of gasoline increases. D. The supply of gasoline decreases.