If there is a ceiling price below the equilibrium level, a decrease in demand will worsen the shortage
a. True
b. False
Indicate whether the statement is true or false
False
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Last year the price level increased from 118 to 122. The increase in the price level leads to a decrease in
A) potential GDP. B) the money wage rate. C) the buying power of money. D) the real interest rate. E) the price of domestic goods and services relative to foreign goods and services.
Poll taxes are:
A. a way to disenfranchise the poor. B. a tax that must be paid in order to cast a vote. C. used to disenfranchise those groups even when the right to vote exists. D. All of these are true.
If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity
a. and real GDP per person rise. b. rises but real GDP per person falls. c. falls and real GDP per person rises. d. and real GDP per person fall.
Which of the following is NOT a predictable result of a price ceiling set below the market clearing? price?
A) an illegal market in the good
B) excess quantity supplied
C) excess quantity demanded
D) lines to purchase the product