The above figure shows a graph of the market for pizzas in a large town. As a result of concern over the affordability of pizza, the government restricts sellers from charging a price over $7. As a result, the quantity of pizzas consumed will
A) increase.
B) decrease.
C) remain unchanged.
D) be indeterminable.
B
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In the market for cell phones, all of the following would cause the supply of cell phones to change except:
A) an improvement in the technology used to produce cell phones. B) an increase in the cost of labor used to produce cell phones. C) a change in cell phone producers' expectations. D) an increase in the number of buyers in the market for cell phones.
When many banks choose to hold excess reserves, ______________ monetary policy may not work well.
a. tight b. free c. expansionary d. contractionary
Inflation is primarily a problem
a) because even low inflation rates severely hamper GDP growth b) for those who are heavily indebted c) when it is volatile and thus unpredictable d) because it is severely underestimated, especially when products are improving in quality e) for accounting and record-keeping, but it does not affect the actual trading of goods and services
Because the natural rate of unemployment is not known precisely, policymakers who use it as a guide for policy must be
A. more aggressive with policy changes than they would be if they knew the value of the natural rate. B. less aggressive with policy changes than they would be if they knew the value of the natural rate. C. ready to change policy more quickly. D. aware of other data.