If there is an excess supply of a good on the market,
a. the price is lower than the equilibrium price
b. the quantity demanded exceeds the quantity supplied
c. the price will fall
d. there is a shortage of the good
e. the price will rise
C
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If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP, then
A) the MPC is 0.5. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 0.9.
The largest of the regional Federal Reserve Banks is located in:
A. Kansas City. B. New York City. C. San Francisco since it serves almost one-third of the country. D. Washington D.C.
The Taylor rule implies that the Fed should set the federal funds target based on which of the following?
A. the proportionate gap between actual real GDP and a measure of potential real GDP B. the current deviation of the actual inflation rate from the Fed's inflation objective C. an estimated long-run real interest rate D. all of these
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket is $25
A) no one will buy a ticket. B) Anya's consumer surplus is $1. C) everyone will buy a ticket. D) consumer surplus will be maximized.