Quantity demanded is affected not just by price but by other variables, such as income and the prices of other goods.
Answer the following statement true (T) or false (F)
True
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On the graph above, suppose the economy is at point 1. Which sequence of points best illustrates the short-run and then long-run impacts if taxes are reduced for one year, then returned to the original level? [Assume that potential output remains
constant at .] A) 7, 2, 5 B) 2, 4, 1 C) 2, 7, 6 D) 7, 8, 1
When an economy is operating at its full employment rate of output:
a. the rate of unemployment will be zero. b. output will exceed the economy's maximum sustainable rate. c. the actual rate of unemployment will equal the natural rate. d. the economy's potential rate of output will exceed actual GDP.
If, at the current price, there is a surplus of a good, then
a. the quantity supplied is greater than the quantity demanded. b. the market must be in equilibrium c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied.
The slope of a line that passes through the points (5, 8) and (12, 12) is
a. -7/4. b. -4/7. c. 4/7. d. 7/4.