Consumer surplus equals the quantity supplied minus the quantity demanded
a. True
b. False
Indicate whether the statement is true or false
False
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Why does the supply curve of Japanese yen slope up?
What will be an ideal response?
According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then:
A. the economy would remain in this condition indefinitely. B. the government must increase spending to restore full employment. C. prices and wages would fall quickly to restore full employment. D. the supply of money would increase until the economy returned to full employment.
Refer to the above figure. A price control has been set which has led to a surplus. This means that a
A. price floor has been set at P1. B. price ceiling has been set at P2. C. price floor has been set at P2. D. price ceiling has been set at P1.
Which of the following is FALSE?
A) Current account deficits must be financed through inflows of capital. B) Loans from abroad add to a country's stock of external debt and generate debt service. C) Borrowed funds are always used in a manner that contributes to the expansion of the country's productive capability. D) Debt service can become an unsustainable burden that holds back development.