Which of the following is an impact of a rent ceiling set below the equilibrium rent?
A) Renters find apartments to rent more rapidly because the rent ceiling is lower.
B) Landlords' incentives to provide apartments decrease.
C) The supply of apartments increases as soon as the rent ceiling is imposed.
D) A surplus of housing occurs.
E) Search for apartments decreases because renters need no longer search for the apartment with the lowest rent.
B
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A cut in tax rates effects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and ________ the size of the multiplier effect
A) increasing; increasing B) decreasing; decreasing C) decreasing; increasing D) increasing; decreasing
People make mistakes in allocating their time
a. because they always act irrationally b. despite always having expectations fulfilled c. only when leisure is a normal good d. because acquiring information is costly e. more often when the cost of making a mistake is high
Refer to Figure 25.1 for an oligopoly firm. Assume that the existing price and quantity are $10 and 2,000 units. Which of the following statements is most likely correct?
A. Demand curves D1 and D2 both assume that rivals match any price changes. B. Demand curve D1 assumes that rivals do not match price changes. C. Demand curves D1 and D2 both assume that rivals will not match any price changes. D. Demand curve D2 assumes that rivals do not match price changes.
A decrease in the marginal tax rate on asset income in the short run in the market clearing model:
a. raises the stock of capital b. reduces the market clearing rental price of capital. c. does not change real GDP. d. all of the above.