In the ________ increases in the supply of money will ________
A) long run; lead to lower prices B) short run; raise total demand and output
C) long run; raise total demand and output D) short run; decrease total demand and output
B
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If a good is scarce, does that imply that there is a shortage of it?
What will be an ideal response?
When a government defaults on its obligations, the event is called a
A) sovereign default. B) magisterial default. C) private default. D) sudden stop default. E) national default.
Suppose that the equilibrium price in the market for widgets is $5 . If a law increased the minimum legal price for widgets to $6, producer surplus
a. would necessarily increase even if the higher price resulted in a surplus of widgets. b. would necessarily decrease because the higher price would create a surplus of widgets. c. might increase or decrease. d. would be unaffected.
A transfer payment that rises automatically during a recession is
A) interest payments on the national debt. B) unemployment compensation. C) Social Security payments to retired persons. D) government payments to war veterans.