A surplus means that the quantity supplied is greater than the quantity demanded at the prevailing price
a. True
b. False
Indicate whether the statement is true or false
True
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This Application examines the concept of
A) sticky prices. B) consumer spending habits. C) stagflation. D) the wealth effect.
Due to the recession in 2008, firms decreased their profit expectations. As a result, there was a ________ shift in the ________ loanable funds curve
A) rightward; supply of B) leftward; demand for C) rightward; demand for D) rightward, supply of
Consider an industry that is in long-run equilibrium. An increase in demand leads to a decrease in the price of the good. We know that this is
A) a decreasing cost industry. B) a constant cost industry. C) an increasing cost industry. D) not a competitive industry.
When the loanable funds and foreign exchange markets are in equilibrium,
a. there are no leakages from the circular flow of income. b. macro equilibrium cannot occur. c. the leakages from the circular flow will equal the injections into it. d. injections into the circular flow will exceed leakages from it.