If the equilibrium price of widgets is $22, and then a price ceiling of $24 is imposed by the government, as a result,
a. there will be no effect on the widget market.
b. there will be a shortage of widgets
c. there will be a surplus of widgets.
d. the price of widgets will increase.
Answer: a. there will be no effect on the widget market.
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When total planned real expenditures change due to the changes in net exports, this is known as the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
Consider the production possibilities frontier displayed in the figure shown. A society faced with this curve could choose to produce:
A. B, C, or D. B. A, B, or C. C. A, D, or C. D. A, B, or D.
Nominal GDP =________ where the price level is the ________
A) Price level ÷ Real GDP; GDP deflator B) Price level × Real GDP; CPI C) Price level ÷ Real GDP; CPI D) Price level × Real GDP; GDP deflator E) none of the above
Sterilization occurs when a central bank offsets the effects of expansionary monetary policy through foreign exchange market intervention
a. True b. False Indicate whether the statement is true or false