In moving from a shortage toward the market equilibrium, which of the following is true?
a. Quantity supplied decreases.
b. Quantity demanded increases.
c. Price falls.
d. Price rises.
d
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A rise in the price level causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
Answer the following statements true (T) or false (F)
1. The circular flow of income does not take into consideration nonprofit institutions. 2. The total payment of resource income in the economy is equal to the value or cost (including profit) of the output. 3. GDP is not only the value of total output, but it also indicates the total spending of consumers, businesses, governments, and international traders on these goods and services. 4. The circular flow represents the total level of output and income. 5. In the circular flow, services rendered by the resource owners are compensated through payments of wages, rent, interest, and profits.
.In the short run, which of the following is the most likely effect of an unanticipated move to a more expansionary monetary policy?
What will be an ideal response?
Economic theory states that the optimal depletion rate will
a. Imply the extraction of all of a resource now as long as interest rates are positive b. Increase as the discount rate is raised c. Decrease as the discount rate is raised d. Always ignore benefits to future generations e. Always create excessive pollution