Which of the following statements is true?
A) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded.
B) If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
C) An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase.
D) If both demand and supply decrease, there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.
A
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In a certain economy, the components of aggregate spending are given by:C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?
A. 3,800 B. 350 C. 410 D. 3,500
The costs associated with the overproduction of medical services as a result of comprehensive health insurance are passed on to everyone who has health insurance in the form of higher premiums
a. True b. False
A patent and a trade secret have exactly the same effect
Indicate whether the statement is true or false
Describe how the moral hazard associated with welfare benefits can be reduced, and tell what other problems this creates.
What will be an ideal response?