Equilibrium is reached where there is no inherent force causing quantity supplied or quantity demanded to change
a. True
b. False
Indicate whether the statement is true or false
True
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If policymakers implement an expansionary fiscal policy but do not take into account the potential for crowding out, the new equilibrium level of GDP is likely to
A) be at potential GDP. B) be below potential GDP. C) be above potential GDP. D) There is insufficient information given here to draw a conclusion.
Refer to Figure 4-10. What is the area that represents the producer surplus after the imposition of the ceiling?
A) F B) D + F + G C) A + B + D + F + G D) F + G
Which type of restriction on quantity of imports is the most transparent?
A) Quota B) Licensing requirements C) Voluntary export restraints D) Government procurement policies
Interest rates are higher the
A) shorter the duration of the loan. B) greater the risk. C) larger the amount of the loan, holding other things constant. D) lower the inflation rate.