A decrease in demand, with supply constant, results in a(n)
a. increase in equilibrium price and a decrease in equilibrium quantity
b. decrease in equilibrium price and a decrease in equilibrium quantity
c. increase in equilibrium price and an increase in equilibrium quantity
d. increase in equilibrium price and an ambiguous effect on equilibrium quantity
e. decrease in supply
B
You might also like to view...
In the Friedman "Fooling Model" if P(e) is less than P then the labor supply curve in Figure 17-1 above
A) shifts leftward when workers realize their error. B) always shifts rightward. C) initially remains the same. D) Both A and C are correct.
If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a
A) convenient variable. B) coincident variable. C) leading variable. D) lagging variable.
fill in the blanks: Other things constant, when households decide to save more, the supply of credit ________ and interest rates ________.
A. falls; fall B. rises; fall C. falls; rise D. rises; rise
What is the stage in a business cycle called when real GDP stops falling?
(A) A peak (B) A contraction (C) A trough (D) An expansion