At a price of P0 in the above figure, which of the following statements is FALSE?
A) Quantity demanded equals quantity supplied.
B) There is an equilibrium in the market.
C) P0 is the market clearing price.
D) There is a surplus equal to Q0.
D
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When a market is in surplus, there is pressure for the price to move upward
a. True b. False Indicate whether the statement is true or false
Which of the following would be considered the most prominent spokesman for the rational expectations school of thought?
A. Adam Smith B. Arthur Laffer C. Milton Friedman D. Robert Lucas
Now that Social Security payments are indexed the:
A. nominal value is adjusted to maintain a constant real value. B. payments are adjusted so retirees can buy more with their payments over time. C. payments are not adjusted enough, so retirees can buy less with their payments over time. D. real value is adjusted to maintain a constant nominal value.
Refer to the information given. If the price level unexpectedly declines from 100 to 75, the level of real output in the short run will:
Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the
price level (P) initially is 100, and prices and wages are flexible both upward and downward.
Use the following short-run aggregate supply schedules to answer the question.
A. rise from $500 to $560.
B. fall from $500 to $440.
C. fall from $560 to $500.
D. rise from $440 to $500.