When a price ceiling prevents a higher market price from rationing a good,
a. a surplus of the good will develop.
b. scarcity of the good will be eliminated.
c. non-price factors will play a more important role in the rationing process.
d. the future supply of the good will expand rapidly.
C
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Suppose the actual equilibrium federal funds rate is above the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A) monetary policy is contractionary. B) monetary policy is expansionary. C) fiscal policy is expansionary. D) fiscal policy is contractionary.
The unemployment rate measures: a. unemployed workers as a percentage of the population
b. unemployed workers as a percentage of the population over the age of sixteen. c. unemployed workers as a percentage of the labor force. d. the number of people unemployed divided by the number of people employed.
Explicit costs are costs that:
A. are zero when no output is produced. B. do not depend on the quantity of output produced. C. require a firm to spend money. D. depend on the quantity of output produced.
On a downward-sloping linear demand curve, demand becomes more inelastic as price decreases.
Answer the following statement true (T) or false (F)