What happens as the result of a shortage?
A) There is downward pressure on prices.
B) There is upward pressure on prices.
C) Consumers begin to view the good as an inferior good because they have a hard time finding it.
D) Supply of the good decreases.
Answer: B
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In the above figure, if the interest rate is 2 percent per year, the ________ because ________
A) demand for money curve will shift; the quantity of money demanded is less than the quantity of money supplied B) demand for money curve will shift; the quantity of money demanded is greater than the quantity of money supplied C) interest rate will change; the quantity of money demanded is less than the quantity of money supplied D) interest rate will change; the quantity of money demanded is greater than the quantity of money supplied E) supply of money curve will shift; the quantity of money demanded is greater than the quantity of money supplied
In the above, a positive relationship between price and quantity is shown in
A) Figure A. B) Figure B. C) both Figure A and Figure B. D) neither Figure A nor Figure B.
Which of the following is not an assumption of the linear breakeven model:
a. constant selling price per unit b. decreasing variable cost per unit c. fixed costs are independent of the output level d. a single product (or a constant mix of products) is being produced and sold e. all costs can be classified as fixed or variable
Starting from an initial long-run equilibrium, under the rational expectations hypothesis, an anticipated shift to a more expansionary policy will increase:
a. prices but not real output in the short run. b. real output but not prices in the short run. c. real output in the long run but not in the short run. d. real output in both the long run and the short run.