If aggregate quantity demanded is greater than aggregate quantity supplied at a particular price level, then
A) consumers will bid prices upward, and a greater quantity of output will be supplied.
B) the shortage will likely be eliminated.
C) a and b
D) none of the above
C
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How will an increase in the expected future exchange rate affect the current supply and demand curves for dollars?
What will be an ideal response?
Which of the following is NOT an economic resource?
A) money B) low-skilled labor C) coal D) an engineer
In the classical model, if government tries to increase employment and output by increasing its own purchases,
a. it will achieve its goal and economic conditions will improve b. it will not attain its objective unless it also decreases taxes c. its actions will cause the interest rate to rise, which will choke off investment spending d. firms will be motivated to increase their output, thereby creating even more jobs e. saving will also increase, as more people are employed
If in some production range average cost is rising, the firm is experiencing
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.