The graph above represents a competitive market for a product where the government has set a price ceiling of 0A. What quantity will buyers be able to buy after the imposition of the price ceiling?
a. KL
b. 0L
c. JL
d. 0J
Ans: d. 0J
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The most powerful tool unions have at their disposal when bargaining with management is
A) the Taft-Hartley Act. B) the ability to strike. C) the secondary boycott. D) the power of pure competition.
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession. b. increase in the money supply when there is a recession. c. decrease in government expenditures when there is a recession. d. All of the above are correct.
The crowding out effect refers to a decrease in
A. Consumption or investment as a result of an increase in government borrowing. B. Consumption resulting from an increase in investment. C. Government spending resulting from a decrease in taxes. D. Investment resulting from an increase in consumption and a decrease in savings.
The income-expenditure multiplier arises because one person's additional spending becomes another person's additional income that will generate additional:
A. menu costs. B. cyclical unemployment. C. autonomous expenditure. D. spending.