A surplus occurs when price is higher than the market equilibrium

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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If Congress passes legislation to increase government purchases to counter the effects of a recession, then this would be an example of a(n)

A. nondiscretionary fiscal policy. B. supply-side fiscal policy. C. contractionary fiscal policy. D. expansionary fiscal policy.

Economics

During recessions natural real GDP

A) falls. B) increases. C) remains constant. D) A, B, or C do occur during any given recession.

Economics

The four somewhat overlapping theories of how the entrepreneur is able to earn a profit are: (1) ___________; (2) ___________; (3) ___________; and (4) ____________.

Fill in the blank(s) with the appropriate word(s).

Economics

Use the following information to answer the next question.C = A + .75(Y - T)A = $900I = $600G = $400T = $400NX = -$200At the equilibrium level of real GDP, what is the level of consumption?

A. $900 B. $2,000 C. $4,800 D. $3,600

Economics