When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied resulting in
a. excess demand or shortages.
b. excess supply or surpluses.
c. equilibrium prices.
d. price controls.
a. excess demand or shortages.
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Why is the tax cut multiplier different from the purchases multiplier?
What will be an ideal response?
Which of the following is a long-run adjustment?
A. A restaurant hires a new chef. B. A bank hires a new CEO. C. A company hires ten new management trainees. D. A company relocate to a new headquarter in another city.
If Bob (the publisher) promises to give Susan (the author) 15% of the proceeds of the sale of a work of Susan's,
A. a copyright is necessary. B. a trademark is necessary. C. no contract is necessary. D. a contract is necessary.
Are forecasts of economic activity accurate enough to permit "fine-tuning" of the economy?
a. No, forecasting is so inaccurate that it should be abandoned. b. No, forecasts are not accurate enough for this. c. Yes, forecasts are accurate and reliable enough for this. d. Yes, at least most of the time.