Refer to the data. If the price level is 250 and producers supply $450 of real output:
Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy:
A. a shortage of real output of $150 will occur.
B. a shortage of real output of $100 will occur.
C. a surplus of real output of $150 will occur.
D. neither a shortage nor a surplus of real output will occur.
C. a surplus of real output of $150 will occur.
You might also like to view...
Demand relates the amounts of a good purchased to
A) the amounts actually obtained. B) the gross domestic product. C) the quantity needed. D) the sacrifices required to obtain the good. E) the time required to produce the good.
The Long-Run Phillips Curve is vertical, suggesting that ________
A) allowing inflation to rise will not succeed in keeping unemployment low B) changes in unemployment have no lasting impact on inflation C) shifts of the short-run Phillips curve impact inflation, but have no effect on unemployment D) all of the above E) none of the above
After taking out a one year loan with an annual interest rate of 5 percent, Tommy pays $2,100 back to the bank. The principal of the loan must be ___________ and the interest payment must be ___________.
A. $2,000; $100 B. $2,100; $100 C. $100; $2,100 D. $100; $2,000
Which of the following statements is correct?
a. Stocks, bonds, and deposits are all similar in that each provides a common medium of exchange. b. Most buyers of stocks and bonds prefer those issued by large and familiar companies. c. Banks charge borrowers a slightly lower interest rate than they pay to depositors. d. None of the above is correct.