A shortage results from a current price being below the equilibrium price.
a. true
b. false
Ans: a. true
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Use the following table to answer the next question. The base year is 2007.YearHot DogsBaseballsBottles of Beer?PriceQuantityPriceQuantityPriceQuantity2005$2.50100$2.5050$1.0010020064.001005.001002.0015020075.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250Inflation for the year 2008 is
A. 80%. B. 76.5%. C. 71%. D. 50%.
________ is defined as national income + transfers - taxes
A) Disposable income B) Personal income C) GDP D) Gross private domestic investment
A change that increases the real money supply relative to real money demand causes
A) the LM curve to shift down and to the right. B) the LM curve to shift up and to the left. C) the IS curve to shift down and to the left. D) the IS curve to shift up and to the right.
Assuming everything else constant, what effect will each of the following have on the long-term real interest rate?
a. The expected inflation rate decreases. b. The default-risk premium increases. c. Investors expect future short-term interest rates to fall.