When a government imposes a price floor on a good that is above the market equilibrium price
A) a surplus will develop.
B) a shortage will develop.
C) producers will increase their sales price.
D) consumers will increase their demand for the good.
A
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Refer to Figure 13-2. Ceteris paribus, a decrease in the labor force would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Considering its effects through income, the price level, and interest rates only, contractionary fiscal policy causes the value of a country's currency to:
A. move unpredictably. B. rise. C. remain unchanged. D. fall.
The distance between the TC and the TVC curve
A) is constant. B) decreases as output increases. C) increases as output increases. D) is the MC curve.
The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except:
A. Improved product quality B. Added leisure C. Debasement of the environment D. More stress-free lifestyle