If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the equilibrium price is
A. $1.
B. $4.
C. $7.
D. $12.
Answer: A
You might also like to view...
Primary assets held by the Federal Reserve are
a. loans to commercial banks. b. U.S. government securities. c. Federal Reserve notes. d. reserve deposits by banks.
Throughout history many governments have financed government operations with the printing press, and paying government bills by increasing the money supply. The United States followed this path during the Civil War, approximately doubling the U.S. money
supply between 1860 and 1865 using paper fiat money called Greenbacks. What do you think this rapid increase in the money supply did to inflation and inflationary expectations? Suppose the economy was in long-run equilibrium by the end of the war and the government began to remove Greenbacks and reduce the money supply. Use your understanding of the Phillips curve relationship to explain the effect on the economy.
The consumer price index is designed to measure the extent to which
a. the cost of a typical bundle (market basket) of consumer goods has changed over time. b. consumers have increased their spending over time. c. GDP is allocated to consumers, rather than to business or government, over time. d. prices paid by employers to resource owners have changed over time.
The Bush tax cuts of 2001-2010 reduced
A. The marginal tax rate for the highest income class to 10 percent. B. Incentives for education. C. Vertical inequities. D. The top marginal tax rate from 39.6 percent to 35 percent.