In a constant-cost industry, an increase in price causes:
A. some firms to exit the industry.
B. quantity supplied to remain constant.
C. some firms to enter the industry.
D. price controls.
Answer: C
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During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities. The result of this legislation was
A. a large increase in the availability of those items, ending shortages. B. a severe shortage of those essential commodities. C. an increase in the price of those items, thus alleviating shortages. D. new efforts to increase production of those commodities. E. a minor inconvenience as persons adjusted to the new law.
Domestic agricultural subsidies intended to support the nation's farmers would not be considered a trade barrier so would not be disputed internationally
Indicate whether the statement is true or false
In the open-economy Keynesian model, it always has to be true that
a. planned savings equals planned investment. b. planned savings is greater than planned investment. c. planned savings is less than planned investment. d. none of the above.
Monetarists believe that an increase in the money supply will raise both Real GDP and the price level in the short run, and will only raise Real GDP in the long run
Indicate whether the statement is true or false