A decrease in supply (prod quota)
What will be an ideal response?
Qs becomes amount permitted by quota, quantity is fixed
Perfectly inelastic supply
You might also like to view...
The measure of production that values output using base-year prices is called
A) underground GDP. B) nominal GDP. C) real GDP. D) value-added GDP.
Government spending can ____________ certain elements of long-term growth
a. discourage b. negate c. encourage d. compromise
The capital and financial account records
A) the current value of the balance of payments in U.S. dollars. B) all the purchases and sales of capital goods in the United States. C) imports and exports of capital goods. D) transactions involving trade, interest payments, and net transfers. E) transactions involving foreign investment in the United States and U.S. investment abroad.
Ignoring any supply-side effects, if government expenditure on goods and services decreases by $10 billion and taxes decrease by $10 billion, then real GDP ________ and the price level ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls E) does not change; does not change