The above figure shows the market for crude oil. If the oil exploration firms convince the government to set a minimum price of $4 per barrel, then
A) 100 barrels of crude oil will be sold at $4.
B) zero barrels of crude oil will be sold.
C) zero barrels of crude oil will be demanded.
D) None of the above.
A
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The transactions demand for money is the demand to hold money to
A) make regular, expected purchases. B) purchase bonds when interest rates increase. C) store one's wealth. D) meet unplanned expenditures.
Which of the following is explained by the price elasticity of demand for a product?
a. The effect of changes in price on the supply of the product b. The effect of changes in quantity on the supply of the product c. The effect of changes in quantity on the price of the product d. The effect of changes in price on the quantity demanded of the product e. The effect of changes in price on the quantity supplied of the product
A policy of a tax cut combined with increases in government purchases would shift the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
Game theory analysis of macro policy suggests that as voters become more short-sighted
A) policy makers will be tempted to raise taxes. B) policy makers will be forced to balance the budget. C) policy makers will adopt policies today to achieve balanced budgets in the future. D) all of the above E) none of the above