In this graph, what effect does the increase from PL2 to PL3 have?
a. It drives the output up from below capacity to capacity.
b. It drives the output down from beyond capacity to capacity.
c. It stabilizes the output at below capacity.
d. It stabilizes the output at beyond capacity.
b. It drives the output down from beyond capacity to capacity.
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To affect the market outcome, a price ceiling
A) must be set below the equilibrium price. B) must be set below the legal price. C) must be set below the price floor. D) must be set below the black market price.
Keynes believed that the instability in income was caused by variability in
a. investment. b. taxes. c. consumption and savings. d. government spending.
Suppose a pizza restaurant has two pizza ovens that may be used to bake pizzas, so the restaurant has a maximum capacity constraint that affects the shape of the firm's short-run marginal cost curve
What happens to maximum capacity segment of this curve if the firm adds another pizza oven? A) Shifts upward B) Shifts downward C) Shifts leftward D) Shifts rightward
Which of the following coordinates and plans foreign aid programs and expenditures in the United Sates?
a. The Federal Reserve Board b. The Federal Open Market Committee c. The Agency for International Development d. The Bureau of Economic Analysis e. The U.S.Department of the Treasury