Equilibrium price is best described as the price
a. at which excess demand is less than excess supply
b. at which there is an excess demand
c. at which there is an excess supply
d. that tends to fall because of an excess supply
e. at which excess demand and excess supply equal zero
E
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If the money wage rate is constant and the price level increases, what happens to the real wage rate, firms' profits, and the aggregate quantity supplied?
What will be an ideal response?
Who controls a partnership?
A) bondholders B) the owners C) stockholders D) employees
The notion that the value of money is determined by the overall quantity of money in existence is known as the:
A. money quantity theory. B. quantity theory of money. C. price level theory. D. level theory of prices.
Can macroeconomic policy be used systematically to create unanticipated inflation?
A. No, according to Keynesian economists. B. Yes, according to classical economists. C. Yes, according to Keynesian economists, if Ricardian equivalence holds. D. No, according to classical economists.