There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
a. the prices of goods were artificially held down by price controls.
b. black markets were legal during the war.
c. goods were not subject to price controls.
d. gasoline rationing greatly restricted civilians from driving to stores.
a
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In the above figure, the initial supply of loanable funds curve is SLF0 and the initial demand for loanable funds curve is DLF0. An economic expansion that raises disposable income and the expected profit would
A) only shift the supply of loanable funds curve rightward to a curve such as SLF1. B) shift the supply of loanable funds curve rightward to a curve such as SLF1, and shift the demand for loanable funds curve rightward to a curve such as DLF1. C) only shift the demand for loanable funds curve rightward to a curve such as DLF1. D) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
The economy is in short-run equilibrium
A) at any point on the IS curve. B) only at the natural level of GDP. C) at any point on the LM curve. D) only at a point that is on both the IS and LM curves.
If demand is elastic, and the government decides to raise the tax on new cars, the price of cars will increase by a ________ amount and car buyers will bear a ________ share of the tax.
A. large; large B. large; small C. small; large D. small; small
Actual investment includes unplanned changes in inventory.
Answer the following statement true (T) or false (F)