A price ceiling imposed by the government:
A) can create situations of excess demand.
B) is a tax that increases the market price of a good.
C) involves pricing a commodity above the market price.
D) helps in establishing equilibrium in case of shortage or surplus.
A
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In the steady state in the Solow growth model, the economy is in equilibrium with the capital-labor ratio and real GDP per worker ________, and with capital, labor, and real GDP ________
A) constant; constant B) growing; constant C) constant; growing D) growing; growing
What will cause the equilibrium point to move from E1 to E2?
a. a downward movement, or decrease, in price from P2 to P1
b. an upward movement, or increase, in price from P1 to P2
c. a leftward movement, or decrease, in quantity from Q2 to Q1
d. a rightward movement, or increase, in quantity from 0 to Q1
Monetary policy is conducted by
A. only the president. B. only Congress. C. both the president and Congress. D. neither the president nor Congress.
When an economy's resources are not fully employed, then it must be true that the:
A. production point is located outside and to the right of the production possibilities curve. B. production point is located along the production possibilities curve. C. production point is located inside and to the left of the production possibilities curve. D. production possibilities curve shifts to the left.