When does market equilibrium change in a given market?
What will be an ideal response?
Market equilibrium changes when either the supply curve or the demand curve shifts. If demand increases, equilibrium price and quantity both rise. If supply increases, equilibrium price falls and equilibrium quantity rises. As demand and supply rise or fall, market equilibrium also changes in response. A new equilibrium price will be the result of shifting supply and demand curves.
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People who are not currently employed but say they want a job are counted as unemployed only if they: a. have previously held a job
b. are actively seeking employment. c. are discouraged workers. d. are between 16 and 65 years of age. e. are willing to accept any offer of employment.
If two small perfectly competitive firms merge, the merged firm will be:
a. a price-taker. b. a market leader. c. a price-discriminator. d. an oligopoly.
If a government must run a balanced budget, then tax revenues and government spending:
a. move roughly in opposite directions. b. move exactly in opposite directions. c. move exactly in the same direction. d. move roughly in the same direction.
Some economists believe that policymakers should avoid stabilization policy because
A. lags make the policy impact unpredictable. B. no tax cut ever stimulated demand. C. stabilization policies are rarely signed into law. D. it never works.