An increase in demand and a decrease in supply cause which of the following?
a. equilibrium price change is indeterminate
b. equilibrium quantity decreases
c. equilibrium price falls
d. equilibrium price rises
e. equilibrium quantity increases
D
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Which of the following multiplier concepts is most important from the point of view of devising an activist policy?
A) the income and money-creation multipliers B) the dynamic multipliers, that is the timing of multiplier effects given a policy change C) the long-term multipliers, that is the total effect from several time periods given a policy change D) the money-creation multiplier
An investor is trying to decide whether to put his funds into stocks or bonds. He expects rising interest rates over the next year and higher inflation. Your advice?
Place point C on the graph to indicate where the United States economy operated in 1997.
A firm whose production process exhibits constant returns to scale would find that if it doubled all of its inputs, its output would ________.
A. less than double B. remain constant C. more than double D. double