If there is an increase in both the supply and demand for a good, which of the following will definitely occur?
a. The price of the good will increase.
b. The price of the good will decrease.
c. The equilibrium quantity will increase.
d. The equilibrium quantity will decrease.
C
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Positive analysis:
A. determines whether the consequences of a policy are desirable. B. recommends whether a policy should be implemented. C. aims at determining only the economic consequences of a particular policy. D. depends on the analyst's values.
A presidential candidate once famously said about a particular policy: "I voted for it before I voted against it." How might such a statement make sense in the context of sophisticated voting along agendas.
What will be an ideal response?
Federal Reserve liabilities and capital accounts are equal to
A) Federal Reserve assets. B) gold certificates + Federal Reserve notes. C) Federal Reserve notes outstanding. D) bank reserves + government securities.
The expenditure approach to GDP accounting includes
a. wages and salaries b. net exports c. net interest d. corporate profit e. proprietors' income