In the long run, a decrease in the money supply will
A) decrease real Gross Domestic Product (GDP).
B) increase real Gross Domestic Product (GDP).
C) increase the price level.
D) decrease the price level.
D
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Which of the following is not a function of prices in a market system?
a. Prices have the crucial job of balancing supply and demand. b. Prices send signals to buyers and sellers to help them make rational economic decisions. c. Prices coordinate economic activity. d. Prices ensure an equitable distribution of goods and services among consumers.
Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 ? 2.5P and Qs = ? 20 + 1.5P, respectively. The government decides to impose a price ceiling of $50 per ton. The possible black market price after the ceiling is:
A. $40. B. $140. C. $80. D. $110.
Being a price taker essentially means
A) a firm can influence the market price. B) a firm cannot influence the market price. C) the firm cannot legally set its price above the market price. D) the firm cannot legally set its price below the market price.
When the United States engaged in quantitative easing from 2008 to 2014, ________ rose sharply.
A. the unemployment rate B. bank reserves C. inflation D. the money supply