An increase in supply causes a temporary surplus at the old equilibrium price.
a. true
b. false
Ans: a. true
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With regard to preventing entry, if identical firms act simultaneously
A) they cannot credibly threaten each other. B) they will all incur losses. C) only one firm will enter the market. D) none of them will enter the market.
United States net unilateral transfers have been
a. positive every year since 1950 b. negative every year since 1950 c. positive every year since 1950 except 1991, during the Persian Gulf War d. negative every year since 1950 except 1991, during the Persian Gulf War e. positive about half the time and negative about half the time since 1950
Which of the following is NOT a function of the Federal Reserve System?
A. making loans to private firms B. supervising member banks C. holding deposits of member banks D. providing for check collection and clearing
When taxes are a function of income as opposed to a lump sum amount, the AE function becomes flatter.
Answer the following statement true (T) or false (F)