A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good
a. True
b. False
Indicate whether the statement is true or false
True
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Firms in perfect competition produce the allocatively efficient output in the short run and in the long run
Indicate whether the statement is true or false
Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $800 . Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $750, then at that same point in time, loans for all banks amount to $6,000
a. True b. False Indicate whether the statement is true or false
The equation representing the final demand approach to calculating GDP is
A. Y = C + I + X + IM. B. Y = C + I + G. C. Y = G + I + X ? IM. D. Y = C+ I + G + (X ? IM).
Efficient production exists when the economy is:
A) operating inside its production possibilities curve. B) operating on its production possibilities curve. C) operating outside its production possibilities curve. D) moving beyond its production possibilities curve