Which of the following is correct?
A. i. A surplus puts downward pressure on the price of a good.
B. ii. A shortage puts upward pressure on the price of a good.
C. iii. There is no surplus or shortage at equilibrium.
Question 8 options:
D. i and ii.
ii and iii.
i, ii, and iii.
only iii.
i and iii.
C. iii. There is no surplus or shortage at equilibrium.
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
A new entrant is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.
In the above figure, a shortage could be caused by a government price ceiling set at
A) $1.00. B) $2.00. C) $2.50. D) $3.00.
Which of the following will result as part of the interest rate effect when the price level rises? a. Households and firms increase their holdings of money
b. Interest rates will increase. c. A lower quantity of real GDP will be demanded. d. All of the above will result as part of the interest rate effect when the price level rises.