Markets can be missing:
A. because a market is taxed.
B. when the sale of a particular service is banned.
C. when miscommunication of information between buyers and sellers leads to the wrong equilibrium price.
D. All of these are true.
D. All of these are true.
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A perfectly elastic demand curve will:
a. be a vertical straight line. b. be a downward sloping straight line. c. be a horizontal straight line. d. be an upward sloping straight line.
The Bretton Woods system required countries to actively buy and sell dollars to maintain fixed exchange rates when:
a. a country experienced a severe bout of inflation. b. the free market equilibrium exchange rate differed from the fixed rate. c. a country experienced serious unemployment. d. the threat of recession began to spread from one country to another. e. worldwide trade began to deteriorate.
Say's law explains
A. how long-term real Gross Domestic Product (GDP) stability is achieved in the classical model. B. why economies experience business cycles. C. how the economy can go into recession. D. how long-run real Gross Domestic Product (GDP) stability is achieved in the Keynesian model.
In the basic aggregate demand - aggregate supply model, an increase in government purchases will in the short run lead to ______ in real GDP and ______ in the price level.
Fill in the blank(s) with the appropriate word(s).