Excess quantity demanded may result from
A) a government-imposed minimum price above market equilibrium.
B) a government-imposed maximum price below market equilibrium.
C) an oversupply of output.
D) technological progress.
B
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
If the asset market is to remain in equilibrium, then if the money supply increases, output is unchanged, the price level is unchanged, and the expected inflation rate is unchanged, then
A) the real interest rate must rise. B) the real interest rate must decline. C) the nominal interest rate must rise. D) the inflation rate must rise.
In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to
A) the declining marginal product of labor. B) the declining marginal product of capital. C) limits in the ability of government policymakers. D) too little savings.
The actual incidence of payroll taxes, in the consensus view, is:
A. Split evenly between the worker and the employer B. More on the employer than on the worker C. More on the worker than on the employer D. All on the employer, who remits the tax to the government