At equilibrium, quantity sold equals the quantity bought. This implies that
A) to sell more, producers require more in payment than consumers are willing to pay.
B) government regulation is necessary.
C) to sell less would require a lower price but would yield greater profit.
D) those who don't buy have been treated unfairly.
A
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Which of the following is a reason that the number of bank failures has generally decreased over time?
a. Banks have been replaced by savings and loan associations. b. The overall riskiness of bank loans has decreased. c. The Federal Reserve stands ready to inject reserves into the banking system. d. All banks have been in good financial health. e. Banks hold most of their assets in the form of reserves.
A tax cut shifts aggregate demand
a. by more than the amount of the tax cut. b. by the same amount as the tax cut. c. by less than the tax cut. d. None of the above is necessarily correct.
Excise tax is usually administered in association with______.
a. investments b. income c. death d. sales
Refer to the graph below. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is a decrease in aggregate demand to AD2, then according to mainstream economists, if prices are flexible and wages are not, this will result in an equilibrium at point:
A. B
B. C
C. D
D. E