Refer to the information provided in Table 3.1 below to answer the question(s) that follow.
Table 3.1Price per PizzaQuantity Demanded (Pizzas per Month)Quantity Supplied (Pizzas per Month)$31,200 600 61,000 700 9 800 80012 600 90015 4001,000Refer to Table 3.1. If the price per pizza is $3, the price will
A. decrease because there is an excess supply in the market.
B. remain constant because the market is in equilibrium.
C. increase because there is an excess demand in the market.
D. increase because there is an excess supply in the market.
Answer: C
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Does the experience of World War II demonstrate that government budget deficits and surpluses can be used to stabilize aggregate demand?
A) No, because the deficits run during the 1930s did not end the recession. B) No, because the fact that deficits or surpluses can alter aggregate demand does not prove they can stabilize it. C) Yes, because nominal GDP increased by more than the amount of the deficit in each wartime year. D) Yes, because World War II demonstrated the multiplier effect of deficits.
Diversification of assets cannot eliminate which kind of risk?
A. Idiosyncratic risk B. Market risk C. Individual risk D. Downside risk
A decrease in the dollar price of the English pound will make
What will be an ideal response?
Which of the following is an example of a positive economic statement?
A. In order to reduce the budget deficit, tax rates should be increased. B. If gas prices fall, consumers should purchase more gas. C. If payroll taxes are raised, then the government budget will show a surplus. D. In order to increase employment, the minimum wage must be decreased.