A price ceiling established below the market clearing price will usually cause
A) nonprice rationing.
B) an excess supply.
C) no change in the market clearing price.
D) a decrease in the market clearing price.
A
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When personal savings rates are ________, it takes ________ change in government purchases to have a given amount of impact of real GDP.
A. higher; more B. unstable; less C. unstable; more D. higher; less
Scarcity: a. exists in command economies
b. exists in market economies. c. exists only for the poor in any type of economy. d. (a) and (b) above are correct
An increase in the price of the U.S. dollar in terms of euros will cause, ceteris paribus,
A. A lower European inflation rate. B. European goods to be more expensive to residents of the United States. C. European goods to be cheaper to residents of the United States. D. Higher interest rates in the United States.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.