This table shows the demand and supply schedule of a good.
According to the table shown, at a price of $0.50 quantity demanded:
A. exceeds quantity supplied and a shortage exists.
B. is less than quantity supplied and a shortage exists.
C. exceeds quantity supplied and a surplus exists.
D. is less than quantity supplied and a surplus exists.
A. exceeds quantity supplied and a shortage exists.
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In order to keep the real wage rate constant, the
A) inflation rate must be exactly one half of the expected inflation rate. B) money wage rate must increase by the same amount as the inflation rate. C) money wage rate must increase when the price level falls. D) money wage rate must decrease by the same amount as the inflation rate. E) nominal interest rate must be equal to the inflation rate.
What causes a production possibilities frontier to shift inward?
What will be an ideal response?
The aim of unconventional monetary policy tools is to:
A. increase the value of the dollar. B. stimulate the economy in coordination with fiscal policy. C. boost liquidity and reduce interest rates when credit channels are clogged. D. slow down liquidity and increase interest rates.
Positive economics answers the question, "What ought to be?" Normative economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"
Answer the following statement true (T) or false (F)