Suppose a shortage for good X exists. Given this information, we know that

A) the price of good X will tend to rise toward the equilibrium level.
B) the price of good X will tend to fall toward the equilibrium level.
C) a government price floor should be imposed above the current price so that the market can work more effectively.
D) a government price ceiling should be imposed above the current price so that the market can work more effectively.


A

Economics

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The U.S. economy is experiencing falling output, falling employment, falling incomes and rising unemployment. These conditions best describe a business cycle ________

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Why might economic policies aimed at stabilization actually increase the magnitudes of economic fluctuations?

What will be an ideal response?

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The “law” of diminishing returns rests on the “law” of variable input proportions.

Answer the following statement true (T) or false (F)

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