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.
c
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How is it that economists can claim that perfectly competitive markets give people what they want?
What will be an ideal response?
Monetarists maintain that the increase in the money supply can explain the inflation of the 1970s and 1980s when one considers the bonds purchased by the Fed to finance the federal deficits of the period
Indicate whether the statement is true or false
The aggregate supply curve will be vertical when:
a. output can be increased without an increase in the price level. b. the economy is operating at full-employment capacity. c. output and price level rise together. d. the aggregate demand curve is shifting to the left. e. aggregate demand is absent.
In the spring of 2002 we were in the _____ phase of the business cycle.
A. recovery B. prosperity C. depression D. recession