"Market clearing" refers to the case where
A) the purchase and sale plans of buyers and sellers are fully coordinated.
B) quantity demanded equals quantity supplied.
C) there is neither a shortage nor surplus of a good.
D) all of the above.
D
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In theory, the long-run supply curve for perfectly competitive market firms who are identical is:
A. downward sloping. B. perfectly elastic. C. upward sloping. D. perfectly inelastic.
Refer to the information provided in Table 25.5 below to answer the question(s) that follow.
Table 25.5
Refer to Table 25.5. The required reserve ratio is 10%. If the Bloomington Bank is meeting its reserve requirement and has no excess reserves, its loans equal
A. $1,080. B. $1,530. C. $1,580. D. $1,700.
Which of the following statements is correct?
A. Rent performs an incentive function, but not a rationing function B. Wage rate does not perform an incentive function in the supply of labor C. Profits are payments to capital resource owners D. Demand is the "active," and supply the "passive," determinant of land rent
Answer each of the following questions assuming the economy is experiencing a negative output gap.
a. Is Inflation decreasing, increasing, or stable? b. Is actual output greater than or less than potential output? c. Is unemployment rising or falling? d. Is the Federal Reserve more likely to pursue expansionary or contractionary monetary policy? e. Is the economy likely experiencing an expansion or contradiction?