In the short run, an increase in demand for a good that is sold in a perfectly competitive market
A) increases the number of firms in the market.
B) increases the economic profits of existing firms in the market.
C) has no effect on the price.
D) causes more firms to shut down.
B
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When the economy experiences inflation, people demand a:
A. higher quantity of money, shifting the money demand curve leftward. B. lower quantity of money, shifting the money demand curve rightward. C. higher quantity of money, shifting the money demand curve rightward. D. lower quantity of money, shifting the money demand curve leftward.
If consumption spending increases by $10 million with no changes in net taxes, then:
A. private saving decreases. B. public saving increases. C. private saving increases. D. public saving decreases.
The effect on business of the crowding-out effect in the short run would be reflected by ______.
Fill in the blank(s) with the appropriate word(s).
The New Deal was a government outgrowth of World War I.
Answer the following statement true (T) or false (F)