If producers incorrectly set the price of their product too high a:
A. shortage will result and consumers will bid the price down to equilibrium.
B. surplus will result and excess goods in inventory will signal to producers to lower their prices.
C. shortage will result and consumers will bid the price up to equilibrium.
D. surplus will result and excess goods in inventory will signal the producers to restrict output until sales increase.
B. surplus will result and excess goods in inventory will signal to producers to lower their prices.
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Which of the following is the MOST accurate?
A) U.S. macroeconomic policies in the late 1960s helped cause the breakdown of the Bretton Woods system by early 1973. B) U.S. macroeconomic policies in the late 1970s helped cause the breakdown of the Bretton Woods system by early 1983. C) U.S. macroeconomic policies in the late 1980s helped cause the breakdown of the Bretton Woods system by early 1993. D) U.S. macroeconomic policies in the late 1950s helped cause the breakdown of the Bretton Woods system by early 1963. E) U.S. macroeconomic policies in the late 1960s delayed the breakdown of the Bretton Woods system to early 1973.
The Fisher index
A) uses the arithmetic mean of the Paasche index and the Laspeyres index. B) uses the standard deviation of the Paasche index and the Laspeyres index. C) uses the geometric mean of the Paasche index and the Laspeyres index. D) uses the harmonic mean of the Paasche index and the Laspeyres index.
A curved line may have a positive slope or a negative slope, but it cannot have both positive and negative areas of slope
a. True b. False
An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is: a. greater than 1
b. less than 1 but more than zero. c. negative. d. exactly equal to zero. e. exactly equal to one.