If demand falls and supply falls, equilibrium price will _____ and equilibrium quantity will _____.
Fill in the blank(s) with the appropriate word(s).
rise, fall, or stay the same; fall
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Explain how the money market determines the equilibrium interest rate
What will be an ideal response?
If the economy were left on its own without the interference of government or the Fed, it would move toward an equilibrium rate of growth that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. Classical. b. Keynesian. c. Monetarism. d. Supply-side. e. Neo-Keynesian.
Think of resources: The aggregate supply curve will shift to the right when the
a. quantity of labor in the society decreases b. capital stock in the economy shrinks c. quantity of natural resources in the society gets smaller d. quantity of labor in the economy increases e. price level in the economy rises
In which of the following situations will both market clearing price and the equilibrium quantity increase?
A) an increase in demand with no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply