Economists define "shortage" as
A) quantity demanded exceeds quantity supplied.
B) quantity demanded equals quantity supplied.
C) quantity supplied exceeds quantity demanded.
D) a situation whereby the prevailing price is higher than the market-clearing price.
A
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When the Fed decreases the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant
A) right; rises B) right; falls C) left; falls D) left; rises
Most spells of unemployment are short, and most unemployment observed at any given time is long-term
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of government discretionary spending?
A. Social Security retirement payments B. Medicare benefits for the elderly C. defense spending D. net interest paid on government debt held by the public
Which of the following statements is true?
A) The government plays absolutely no role in economies characterized by communism. B) Competition among firms is likely to be higher in communist economies than in market economies. C) The government plays absolutely no role in economies characterized by market economies. D) Competition among firms is likely to be higher in market economies than in communist economies.