When the market price of a good is below its equilibrium price, competition among
A. buyers will push the price up.
B. buyers will push the price down.
C. sellers will push the price up.
D. sellers will push the price down.
A. buyers will push the price up.
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Explain why environmental damage would be classified as an externality.
What will be an ideal response?
In the long-run, an increase in the budget deficit and an expansionary monetary policy would:
A) increase the price level only. B) increase both the price level and real income. C) increase real income only. D) none of the above.
A surplus exists in a market if a. there is an excess demand for the good
b. quantity demanded exceeds quantity supplied. c. the current price is above its equilibrium price. d. All of the above are correct.
A $500 increase in investment will shift the aggregate expenditures curve up by:
A. exactly $500 and will increase the equilibrium level of real GDP by exactly $500. B. exactly $500 and will increase the equilibrium level of real GDP by less than $500. C. exactly $500 and will increase the equilibrium level of real GDP by more than $500. D. more than $500 and will increase the equilibrium level of real GDP by more than $500.