If the government imposes a price ceiling below the market equilibrium price, which of the following will result?
A. There will be a surplus of the good.
B. The quantity demanded will exceed the quantity supplied.
C. The quantity supplied will exceed the quantity demanded.
D. The demand curve will shift to the left.
Answer: B
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Assume the economy is in short-run equilibrium at a real GDP below its potential real GDP. According to Keynesian theory, which of the following policies should be followed?
a. The Federal Reserve should increase the money supply b. The federal government should increase spending. c. The federal government should do nothing because the economy will self correct to potential real GDP. d. All of the above.
Which word best characterizes the interaction among firms in any oligopoly?
a. cooperation b. collusion c. confrontation d. interdependence
If the United States exports $250 billion worth of goods and imports $420 billion worth of goods
A. the balance of payments will be -$170 billion. B. the balance of trade will be $670 billion. C. the official reserve transaction will be $170 billion. D. the balance of trade will be -$170 billion.