If the government legislates a price ceiling that is above the equilibrium price
A. a shortage will develop.
B. some non-price method of rationing will develop.
C. market price and quantity sold will be unaffected.
D. a surplus will develop.
C. market price and quantity sold will be unaffected.
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The difference between net public debt and gross public debt is
A) all government interagency borrowing. B) the interest paid annually on the public debt. C) the amount owed to individuals and firms outside the United States. D) the current year's budget deficit from the amount of public debt at the start of the year.
Because the liquidity-preference framework focuses on the
a. short run, it assumes the price level adjusts to bring the money market to equilibrium. b. short run, it assumes the interest rate adjusts to bring the money market to equilibrium. c. long run, it assumes the price level adjusts to bring the money market to equilibrium. d. long run, it assumes the interest rate adjusts to bring the money market to equilibrium.
Learning by doing:
A. shifts average total cost curves downward. B. is not important in the real world. C. offsets diseconomies of scale, making the average total cost curve flat. D. causes average total cost curves to be downward-sloping.
If the growth rate for GDP was 9 percent and GDP in year 1 was 100, then GDP in year 2 would be:
A. 90. B. 109. C. 190. D. 199.