At the equilibrium price for gasoline:
a. everyone with the desire and the income to buy gasoline at that price can do so.
b. surpluses are inevitable
c. quantity demanded exceeds the quantity supplied.
d. none of the above
Answer: a. everyone with the desire and the income to buy gasoline at that price can do so.
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Refer to the above figure. Suppose the U.S. economy is currently operating at point C. Which of the following actions would you recommend to the president of the United States?
A) Engage in contractionary fiscal policy by reducing government spending. B) Reduce taxes to stimulate investment, consumption and net exports. C) Increase government spending while holding taxes constant. D) Reduce the interest rate to stimulate investment minimizing the crowding out effect.
McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products
Indicate whether the statement is true or false
Discuss the historic increases and decreases in unionism in the United States and how it affects current labor relations today
Assume that cotton is a normal good. Which of the following would cause both the equilibrium price and equilibrium quantity of cotton to increase?
A) an increase in consumer income B) a drought that sharply reduces cotton output C) a decrease in consumer income D) unusually good weather that results in a bumper crop of cotton