Suppose a price ceiling is currently set below the equilibrium price. Now suppose that policy makers decide to lower the price ceiling. This reduction in the price ceiling will cause which of the following to occur?
A. The surplus in the market will increase.
B. The shortage in the market will decrease.
C. The surplus in the market will decrease.
D. The shortage in the market will increase.
Answer: D
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The Keynesian approach assumes that
A) the economy is self-regulating. B) there is no unemployment in the economy. C) the price level is fixed. D) the government budget is always in deficit.
Suppose the base reference period is 1982-1984. If your nominal wage rate is $8.00 per hour when the CPI is 180, what is your real wage rate in 1982-1984 dollars?
What will be an ideal response?
A high rate of black male joblessness
A. has not existed since the Great Depression. B. has developed just since the 2001 recession and the subsequent "jobless recovery." C. has been very serious problem for at least a decade. D. never existed.
If the CPI rose from 200 in 1992 to 260 in 1996, by what percentage did prices increase?
What will be an ideal response?