When the government sets a price floor which is above the equilibrium price
A. the equilibrium price will be maintained.
B. a shortage will develop.
C. a price ceiling will follow.
D. a surplus will develop.
Answer: D
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Stabilization policy is to be applied if all of the following applies except
A) authorities have good information about the state of the economy. B) policies can be applied quickly. C) markets are out of equilibrium. D) there is no output gap.
Along a straight-line demand curve the
a. slope is constant. b. ratio P/Q constantly changes. c. elasticity grows much smaller toward the right-hand end. d. All of the above are correct.
The California gold rush resulted in an increase in the amount of money in circulation and an increase in prices across the country
Indicate whether the statement is true or false
U.S. has a _____ banking system - state-chartered banks operate beside federally-chartered banks.
Fill in the blank(s) with the appropriate word(s).