Refer to the figure below.
If a price ceiling were imposed at point G, the loss in total economic surplus would be represented by the area ________.
A. DAC
B. JAE + DGF
C. GJEF
D. FEC
Answer: D
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Suppose the government's budget deficit increases by $500 billion. If there is no Ricardo-Barro effect, what occurs?
A) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds decreases. B) The supply of loanable funds curve shifts rightward, the real interest rate falls, and the quantity of loanable funds increases. C) The demand for loanable funds curve shifts rightward, the real interest rate rises, and the quantity of loanable funds increases. D) The demand for loanable funds curve shifts leftward, the real interest rate falls, and the quantity of loanable funds decreases. E) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds increases.
Which of the following is true?
A) The price charged by a monopolistically competitive firm is equal to the price charged by a perfectly competitive firm in the long run. B) The price charged by each firm in a monopolistically competitive market is equal in the long run. C) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a firm in a perfectly competitive market in the long run. D) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a monopolist in the long run.
Today, the Dow Jones Industrial Average
A. consists of 30 stocks. B. is a set group of stocks that remains constant over time. C. contains stocks that are widely held by institutional investors and individuals. D. contains both stocks and bonds of large American companies. E. a and c
Open market operations that represent an attempt to offset short-term fluctuations in bank reserves are known as
A) defensive open market operations. B) dynamic open market operations. C) temporary open market operations. D) equilibrating open market operations.