If an economy is producing a level of output which is lower than the equilibrium level, planned expenditures ________ total output and ________ goods and services are being produced than are being demanded
A) exceed; fewer B) are less than; more
C) are less than; fewer D) exceed; more
A
You might also like to view...
The Coase Theorem works best when who owns the property rights?
A. consumers B. government C. does not matter D. producers
The rate-of-return regulated public utility has strong incentive to control cost
Indicate whether the statement is true or false
Suppose your university decides to increase parking fees in order to deal with the shortage of parking spaces. Nevertheless, the president of your student body convinces the university to pay back the amount spent on higher parking fees to students in the form of a rebate at the end of the school year. Therefore, the increase in parking fees will
A. not solve the parking shortage. B. will have no effect since it will be offset entirely by the rebate. C. make the parking shortage even worse. D. reduce demand for parking and hence alleviate the parking shortage.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.