When an economy is in a recession,
a. strong demand for investment funds will push interest rates upward.
b. strong demand for resources will push the prices of resources upward.
c. the real interest rate will tend to rise.
d. the unemployment rate will rise above its natural rate.
D
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Under the gold standard, a balance of payments surplus leads to an outflow of gold
a. True b. False Indicate whether the statement is true or false
A price ceiling represents
A. a minimum price that can be legally charged for a good or service. B. a first come, first served mechanism for controlling prices. C. a maximum price that can be legally charged for a product or service. D. a lottery imposed upon producers by the government.
In the above figure, a change in quantity supplied with unchanged supply is represented by a movement from
A) point a to point e. B) point b to point a. C) point e to point c. D) point b to point e.
Natural gas is a natural monopoly. The figure above shows the market for natural gas in the city of Lucknow. When an average cost price rule regulation is imposed, the price per household per month is ________
A) $20 and 30,000 households are served B) $40 and 40,000 households are served C) $40 and 30,000 households are served D) $60 and 20,000 households are served