When there is a shortage of a product in a market the:
a. price will fall.
b. price must be below the equilibrium price.
c. price must be above the equilibrium price.
d. producers will reduce output and sales will fall.
b
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The absolute price of a good in dollar terms is the good's:
A. market price B. nominal price C. equilibrium price D. marginal price
Which of the following did not occur during the Industrial Revolution?
a. worker productivity increased b. factories became larger c. direct supervision of labor decreased d. division of labor increased e. fewer stages of production were organized in the household
The intent of indexing is to
a. raise tax revenue automatically during inflation. b. shift the short-run Phillips curve to the right. c. take most of the sting out of inflation. d. reduce inflation gradually.
Which of the following models focuses on how productivity shocks explain fluctuations in real GDP?
A) the monetarist model B) the new classical model C) the real business cycle model D) the new Keynesian model