Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $10, we would expect that
A) price will increase until quantity demanded equals quantity supplied.
B) demand will decrease until quantity demanded equals quantity supplied.
C) supply will increase until quantity demanded equals quantity supplied.
D) there will be no change in the price since the market is in equilibrium.
D
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If the Fed focuses on price stability, the aggregate demand curve will be relatively ________, which shows that aggregate expenditure is ________ to changes in the inflation rate
A) flat; very sensitive B) flat; very insensitive C) steep; very sensitive D) steep; very insensitive
The United States has the most egalitarian distribution of income in the world
Indicate whether the statement is true or false
Like competitive firms, monopolies charge a price equal to marginal cost
a. True b. False Indicate whether the statement is true or false
If the reserve ratio is 0.1, the money multiplier will be:
A. 10. B. 1,000. C. 100. D. 1.