A market is in equilibrium:
A. if the amount producers want to sell is equal to the amount consumers want to buy.
B. whenever the demand curve is downsloping and the supply curve is upsloping.
C. provided there is no surplus of the product.
D. at all prices above that shown by the intersection of the supply and demand curves.
Answer: A
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Expansionary fiscal policy is used to increase aggregate demand in an attempt to fight rising inflation
Indicate whether the statement is true or false
Everything else held constant, an increase in the liquidity of bonds results in a ________ in demand for bonds and the demand curve shifts to the ________
A) rise; right B) rise; left C) fall; right D) fall; left
According to the Keynesian model, the economy will be in equilibrium when
a. the growth of the money supply is constant over time. b. planned leakages equal planned injections. c. the government’s budget is balanced. d. the labor force is fully employed.
If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase
a. both equilibrium quantity and equilibrium price in the long run. b. equilibrium price, but equilibrium quantity will be unchanged in the long run. c. equilibrium price but reduce equilibrium quantity in the long run. d. equilibrium quantity, but equilibrium price will be unchanged in the long run.