Economists assume that when there is a change in supply and/or demand, the market clearing price returns to the equilibrium
A) quickly.
B) slowly.
C) after a protracted negotiation process.
D) after an adjustment period.
Answer: D
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When monetary equilibrium occurs,
A) the demand for final goods and services equals the supply of final goods and services. B) gross business investment falls to zero. C) relative prices remain constant. D) the quantity supplied of money equals the quantity demanded.
By the end of the 19th century, bituminous coal still was the largest single source of mineral energy used in this country, despite the enormous increase in oil production and refining
Indicate whether the statement is true or false
The United States economy has achieved the target rate of unemployment, as set by the Full Employment and Balanced Growth Act (1978), for most years over the last few decades
a. True b. False
If reserve demand is volatile, in order for the central bank to keep interest rates from being volatile, it must:
A. set targets for both interest rates and the quantity of reserves. B. target the quantity of reserves. C. let the quantity of reserves fluctuate. D. not target the interest rates.