A shortage occurs when the:
a. price is at the equilibrium.
b. price is above the equilibrium.
c. price is below the equilibrium price.
d. quantity supplied exceeds the quantity demanded.
c
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In the graph showing aggregate demand and aggregate supply after a positive supply shock, we can see that a positive supply shock would cause______.
a. a leftward shift in the aggregate demand curve
b. a rightward shift in the aggregate demand curve
c. a leftward shift in the short-run aggregate supply curve
d. a rightward shift in the short-run aggregate supply curve
If income increases, the budget line:
A. rotates counterclockwise. B. shifts to the right. C. rotates clockwise. D. shifts to the left.
Which of the following is excluded in the current account?
A. goods exports B. goods imports C. capital inflow and outflow D. net unilateral transfers
When marginal revenue is positive for a linear (inverse) demand function, decreases in output will cause total revenues to:
A. decrease. B. remain unchanged. C. increase. D. There is not sufficient information to answer the question.