If price rises, what happens to supply of a product?
a. It increases.
b. It decreases.
c. It does not change.
d. Uncertain--economic theory has no answer to this question.
C
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Currently, total private sector expenditures in the United States:
a. remained close to one third of GDP. b. fell by half to 50 percent of GDP. c. fell by half to 65 percent of GDP. d. remained close to 60 percent of GDP.
When money is neutral, which of the following increases when the money supply growth rate increases?
a. real output growth b. real interest rates c. nominal interest rates d. the money supply divided by the price level
Opponents of active stabilization policy
a. generally don't believe, even in theory, that fiscal policy can stabilize the economy. b. generally agree that fiscal policy has no impact in the long run. c. believe some effects of monetary policy may be long-lived. d. think the Fed should simply try to fine tune the economy.
Which of the following is NOT a characteristic of monopolistic competition?
A. Some degree of control over price B. A tendency to rely on non-price competition C. A horizontal demand curve D. Some degree of product differentiation