A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium.
A. shortage, shortage
B. surplus, surplus
C. shortage, surplus
D. surplus, shortage
Answer: D
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If the value of your savings is increasing over time, it must be true that the inflation rate:
A. is higher than the nominal interest rate. B. is lower than the nominal interest rate. C. and the nominal interest rate are the same. D. must be zero. AACSB: Analytical Thinking
As a rule, the more of a commodity a consumer acquires, the smaller will be her total utility from that good
a. True b. False Indicate whether the statement is true or false
The formal and informal institutions that support the economy including the laws, customs, manners, conventions, and other institutional under-pinnings that encourage people to pursue productive activity are called the rules of the game
Indicate whether the statement is true or false
According to the Keynesian approach, an increase in taxes
A. will reduce consumption by an amount less than the change in taxes. B. will reduce consumption exactly by the amount of the taxes. C. will increase consumption, as the government will spend the extra tax revenue and that increases consumption. D. will not impact consumption, as most consumption is autonomous.