If the equilibrium price of good X is $4 and a price ceiling is imposed at $5, the result will be a(n):
A. depletion of inventories.
B. shortage.
C. surplus.
D. equilibrium.
Answer: D
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The impact of declining stock prices in the U.S. during the period 2000-2002 on U.S. household wealth was at least partially offset by:
A. an increase in the saving rate. B. an increase in public saving. C. a decrease in the saving rate. D. increasing housing prices
Demand-pull inflation occurs during a period of time in which total spending is increasing less than total output (GDP) is increasing
a. True b. False Indicate whether the statement is true or false
If there is a natural disaster, the long-run aggregate-supply curve shifts
a) upward. b) left. c) right. d) not at all but instead remains constant.
The multiplier effect demonstrates how initial government purchases ______.
a. are equal to total purchases b. have no influence on total purchases c. lead to lower total purchases d. lead to higher total purchases