To be effective, a price floor must be
a. above the equilibrium price.
b. at the equilibrium price.
c. below the equilibrium price.
d. anywhere on the graph.
a
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Explain why these data do not communicate whether the regulations outlined by the CAAA of 1990 are efficient.
According to the EPA’s prospective analysis of the 1990 to 2010 period, total social benefits (TSB) associated with the CAAA of 1990 are estimated at $690 billion ($1990) and the comparable total social cost (TSC) estimates are $180 billion ($1990).
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Actual reserves are equal to
A) required reserves plus fractional deposits. B) excess reserves plus liabilities. C) minimum balances plus desired reserves. D) government securities plus cash in the bank's vault. E) desired reserves plus excess reserves.
In a typical college town, when students go home for the summer, the demand for many items such as pizza and textbooks
a. decreases, which is a shift to the left of the demand curves for these goods. b. decreases, which is a shift to the right of the demand curves for these goods. c. increases, which is a shift to the left of the demand curves for these goods. d. increases, which is a shift to the right of the demand curves for these goods.