Ceteris paribus, if the market supply of a product decreases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. increase; increase
b. decrease; increase
c. decrease; indeterminate
d. increase; decrease
b
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When national output rises, the economy is said to be in
A) an expansion. B) a deflation. C) an inflation. D) a recession.
If U.S. consumers increase their spending on hybrid cars by 60 percent, and 60 percent more hybrid cars are produced, this is known as the
A) majority rule. B) proportional rule. C) government rule. D) profit rule.
The Fed is institutionally independent. A major disadvantage of this is that monetary policy
A. will always be coordinated with fiscal policy. B. is not subject to democratic control as other policies are. C. will never offset fiscal policy. D. cannot be changed once it has been instituted.
The steepness of the aggregate supply curve schedule depends on the time frame.
Answer the following statement true (T) or false (F)