If there is both an increase in the supply of a good and a decrease in demand for a good, which of the following will definitely occur?
a. The price of the good will increase.
b. The equilibrium quantity will decrease.
c. The price of the good will decrease.
d. The equilibrium quantity will increase.
c. The price of the good will decrease.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
If the money wage rate rises and potential GDP remains the same, does the LAS curve or the SAS curve shift or is there a movement along the LAS curve or the SAS curve?
What will be an ideal response?
Which of the following is not a potential source of demand for real loanable funds in the U.S. real loanable funds market?
a. U.S. individuals. b. U.S. businesses c. U.S. governments (state, local, and national). d. Foreign governments, businesses, and individuals. e. All the above are potential sources of demand.
Harry gets $1,000 in currency from his grandfather when he graduates from college. He deposits these funds into his checking account. Considering Harry's personal balance sheet, his assets:
A. And liabilities increased by $1,000 when he deposited the funds into his checking account. B. increased by $1,000 when he deposited the $1,000 into his checking account. C. Increased when he received the $1,000 in currency from his grandfather. D. Increased by $1,000 and his liabilities decreased by $1,000 when he deposited the funds into his checking account.