Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the cost to the marginal seller is $35 for the 500th unit. We know that
a. the equilibrium price of good x is somewhere between $35 and $40.
b. the equilibrium quantity of good x exceeds 500 units.
c. 500 units is not an efficient quantity of good x.
d. All of the above are correct.
d
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Which of the following is an accurate description of the U.S. inflation rate since 1950?
a. The rate has always been below 4 percent. b. Inflation was low in the 1970s. c. Episodes of high inflation occurred in the 1970s and early 1980s. d. Inflation rates were very high in the 1960s. e. Episodes of high inflation occurred in the 1990s.
Older Americans living on a pension and therefore on a fixed income, tend to be made
a. better off when prices rise. b. better off when the inflation rate rises. c. worse off when prices rise. d. worse off when prices fall.
From 2007 to 2012, the U.S. personal savings rate rose. If the additional savings were not translated into investment, Keynes would predict that aggregate income would:
A. decline and remain there. B. rise and remain there. C. rise indefinitely. D. accelerate.