After the September 11, 2001 attacks on the World Trade Center, the supply of downtown office space in Manhattan was dramatically reduced. Forecasters predicted that the equilibrium price would rise, but in fact the price fell
What are some factors that could explain the fall in the equilibrium price, which the forecasters failed to take into account? A) Demand for office space fell due to quality-of-life concerns.
B) The economic slowdown caused demand for office space to fall.
C) both A and B
D) none of the above
C
You might also like to view...
The government redistributes funds via transfer payments in order to ________
A) reduce the number of private transactions B) increase competition among domestic producers C) finance the operation of its various departments D) reduce inequality among the citizens
Which of the following was an attempt to reform the financial system following the 2007 recession?
a. Dodd-Frank Act b. Sarbanes-Oxley Act c. The Buffett Rule d. Boles-Simpson Plan
If the GDP deflator in 2009 was 160 and the GDP deflator in 2010 was 180, then the inflation rate in 2010 was 12.5%
a. True b. False Indicate whether the statement is true or false
The natural rate of unemployment refers to the current unemployment rate
a. True b. False Indicate whether the statement is true or false