An equilibrium in the presence of price floors can be restored by increased consumer effort to obtain scarce goods. ?
Answer the following statement true (T) or false (F)
True
Rationale: In the case of shortages generated by price ceilings, consumers are the ones who will have to expend some additional effort, since there are too few goods produced to meet demand.
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In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C
A) changes in inventories cannot be determined. B) unused industrial capacity exists in the economy. C) unplanned inventories increase. D) unplanned inventories decrease.
Is national defense excludable? Is it rival in consumption? How do we classify national defense in terms of the four types of goods?
An increase in economic growth in China will
A. shift the supply curve of US corn to the right. B. shift the supply curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the demand curve for US corn to the left.
Suppose the U.S. money supply increases from $7.6 trillion to $8.3 trillion. If there is zero real economic growth, and velocity stays constant, then according to the quantity theory of money, the U.S. inflation rate during this period would be:
A. 6 percent. B. 3 percent. C. 9 percent. D. 12 percent.