A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price
a. True
b. False
Indicate whether the statement is true or false
True
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Cyclical unemployment is equal to zero when:
A. actual GDP and potential GDP are equal. B. there is no recessionary gap. C. there is no expansionary gap. D. frictional unemployment equals structural unemployment.
In the circular flow model of the market system, households
A. buy products and sell resources. B. sell products and resources. C. sell products and buy resources. D. buy products and resources.
A(n) ________ is an auction in which bids are placed publicly and the price decreases until a bidder stops the auction
A) open outcry English auction B) open outcry Dutch auction C) silent auction D) penny auction
Suppose that demand is perfectly inelastic. Supply is normal and upward sloping. What is the economic incidence of a unit tax placed on suppliers? Illustrate this with an appropriate diagram.
What will be an ideal response?