If, at the current price, there is a shortage of a good, then
a. sellers are producing more than buyers wish to buy.
b. the market must be in equilibrium.
c. the price is below the equilibrium price.
d. quantity demanded equals quantity supplied.
c
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Which of the following events is likely to reduce the demand for on-campus student housing?
a. a rise in rents for off-campus housing b. more students enrolling at the university c. it becomes less fashionable to live "on campus" d. a rise in dorm fees e. a rise in the incomes of students
Smoothing the peaks and troughs of the business cycle with fiscal policy is
A. difficult, because the government lacks important information about the economy. B. difficult, because economists have not developed any theoretical models of the macroeconomy. C. relatively simple, because the political process usually works smoothly and without significant lags. D. relatively simple, because the government has access to the best information available.
In all economies, investment spending fluctuates
Indicate whether the statement is true or false
During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the
A) supply curve of shoes shifted leftward. B) demand curve for shoes shifted leftward. C) supply curve of shoes shifted rightward. D) demand curve for shoes shifted rightward.