If demand for a product increases, how is market equilibrium restored?
a. As the product’s price increases, the quantity supplied increases until a new equilibrium is gained.
b. As the product’s price decreases, the quantity supplied increases until a new equilibrium is gained.
c. As the product’s price increases, the quantity supplied decreases until a new equilibrium is gained.
d. As the product’s price decreases, the quantity supplied decreases until a new equilibrium is gained.
a. As the product’s price increases, the quantity supplied increases until a new equilibrium is gained.
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In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called
a. spending. b. revenue. c. income. d. wages, rent, and profit.
The economic inefficiency of a monopolist can be measured by the
a. deadweight loss. b. value of the unrealized trades that could be made if the monopolist produced the socially-efficient output. c. area above marginal cost but beneath demand from the monopoly output to the socially-efficient output. d. All of the above are correct.
An increase in consumer confidence will tend to cause which of the following to occur?
A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve
If C = 1,200 + 0.8Y and I = 600, then planned saving equals planned investment at aggregate output level of
A. 6,800. B. 7,200. C. 9,000. D. 10,200.