Which of the following statements is CORRECT?
A) When both demand and supply increase, the quantity decreases and the price might rise, fall, or remain the same.
B) When both demand and supply increase, the price rises and the quantity might increase, decrease, or remain the same.
C) When both demand and supply decrease, the quantity increases and the price might rise, fall, or remain the same.
D) When both demand and supply decrease, the quantity decreases and the price might rise, fall, or remain the same.
D
You might also like to view...
If, in addition to the least squares assumptions made in the previous chapter on the simple regression model, the errors are homoskedastic, then the OLS estimator is
A) identical to the TSLS estimator. B) BLUE. C) inconsistent. D) different from the OLS estimator in the presence of heteroskedasticity.
In general, information asymmetries are ________ within financial markets.
A. uncommon B. common C. not accounted for D. not easily accounted for
Exhibit 10A-6 Aggregate demand and supply model
?
Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 10A-6, the real GDP and price level (CPI) in long-run equilibrium will be:
A. $10 billion and 200. B. $4 billion and 150. C. $10 billion and 150. D. $10 billion and 100.
The production-possibility curve alone does not provide enough information to determine the amount of each good produced by the economy.
Answer the following statement true (T) or false (F)