Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus.
b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus.
c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus.
d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus.
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The private financial market where banks borrow and loan reserves to meet the minimum research requirements is called:
A) federal funds market. B) loanable funds market. C) discount loans market. D) repo market.
Which of the following statements cannot be made regarding consumer preferences?
a. Pat enjoys her second cotton candy less than her first. b. Bill enjoys his second cotton candy as much as the first. c. Arnie enjoys two cotton candies more than one cotton candy. d. Arnie enjoys two cotton candies more than Pat enjoys one cotton candy. e. Bill and Arnie enjoy their second cotton candy less than they do their first.
Which of the following is not a component of the aggregate demand curve?
a. Government spending (G). b. Investment (I). c. Consumption (C). d. Net exports (X-M). e. Saving.
If expectations are "rational," can the Fed control unemployment?
a. Yes, provided it announces policy in advance. b. Yes, if it affects the aggregate demand curve. c. No, because aggregate supply is vertical even in the short run. d. No, because only fiscal policy can affect unemployment.