A price support directly sets the
A) amount of production.
B) subsidy the government must receive from producers.
C) equilibrium quantity.
D) lowest price for which the good may be sold.
E) highest price for which the good may be sold.
D
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Early Keynesians felt that ________ policy was ________, so they stressed the importance of ________ policy
A) fiscal; ineffective; monetary B) monetary; ineffective; fiscal C) monetary; potent; monetary D) fiscal; too potent; monetary
Recall the Added Perspective on the prisoner's dilemma. When there is a prisoner's dilemma,
a. the prisoners stick to a joint strategy b. each prisoner's best strategy is not to confess c. the prisoners must make a once-and-for-all decision d. game theory does not apply e. there is no mutual interdependence
The excess demand created when the government imposes a price ceiling
a. shifts the equilibrium price upward to the price ceiling level b. is the difference between the quantity demanded at the old equilibrium price and quantity supplied at the price set by the price ceiling c. is the difference between the quantity demanded at the price set by the price ceiling and quantity supplied at the old equilibrium price d. is the difference between the quantity demanded at the price set by the price ceiling and quantity supplied at the price set by the price ceiling e. is the difference between the old equilibrium price and the price set by the price ceiling
In the above figure, when real disposable income is less than 600, then
A. the MPC will fall. B. consumption is less than disposable income. C. consumption is the same as disposable income. D. consumption is more than disposable income.