Which of the following is a possible outcome of setting a legal maximum rental rate below the market clearing rental rate?
A) an increase in the quantity of rental housing supplied
B) a decrease in the quantity of rental housing demanded
C) a black market in rental housing
D) a surplus of rental housing
C
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What were some of the consequences of the large current account deficits that the U.S. ran over a long period of time that culminated in the crisis that began in 2007?
What will be an ideal response?
Stagflation means a
A) high rate of inflation coupled with a high rate of unemployment. B) high rate of inflation coupled with a very low rate of unemployment. C) low rate of inflation coupled with a very high rate of unemployment. D) low rate of inflation coupled with a rate of unemployment below the natural rate.
When firms form a cartel in an oligopoly market, the total output is always the same as if the market were perfectly competitive
a. True b. False Indicate whether the statement is true or false
If the economy is near full capacity, the effect of a negative aggregate demand shock is to
A. increase the level of aggregate demand. B. cause the price level to fall. C. increase the level of employment. D. increase the firm's cost of producing at every level of output.