The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes:
A) price and the profits of firms in the market to increase.
B) price and the profits of firms in the market to decrease.
C) price to increase and the profits of firms in the market to decrease.
D) price to decrease and the profits of firms in the market to increase.
A
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If full employment GDP is $8 trillion and equilibrium GDP is $7 trillion
A. there is definitely an inflationary gap. B. there is probably an inflationary gap. C. there is definitely a recessionary gap. D. there is probably a recessionary gap.
Which of the following is likely to happen if a contractionary monetary policy is adopted?
A) Real wages will fall. B) The aggregate price level will increase. C) Equilibrium unemployment will fall. D) The real interest rate will increase.
A rise in the oil price will
A) shift the supply curve of gas to the left. B) shift the supply curve of gas to the right. C) leave the supply curve of gas unchanged. D) Not enough information is provided.
A consumption function is used to illustrate the choices a consumer faces in a world of scarcity
a. True b. False Indicate whether the statement is true or false