A "decrease in the quantity supplied" suggests a:
a. Movement up along the supply curve
b. Movement down along the supply curve
c. Leftward shift of the supply curve
d. Rightward shift of the supply curve
Answer: b. Movement down along the supply curve
You might also like to view...
The real rate of interest equals 5.0 percent and the anticipated rate of inflation is 3.0 percent. What does the nominal rate of interest? equal?
Refer to the above figure. At a price of $6, excess quantity supplied equals
A) 0. B) 12. C) 15. D) infinity.
Policy tools to influence the macroeconomy include
A. Wars, natural disasters, and trade disruptions. B. Tax policy, government spending, and the availability of money. C. External shocks and internal market forces. D. Population growth, spending behavior, and invention.
If a nation is initially on its production possibilities curve, then it can increase its production of one good only by:
A. Decreasing the production of the other good B. Increasing the production of the other good C. Holding constant the production of the other good D. Decreasing the price of the other good