When supply decreases and demand does not change, the equilibrium quantity ________ and the equilibrium price ________
A) increases; rises
B) decreases; falls
C) increases; falls
D) decreases; rises
D
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Which of the following is NOT included using the transactions approach to measuring the money supply (M1)?
A) certificates of deposit B) traveler's checks C) currency D) transaction deposits
Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false
A improvement in production technology will shift the
a. supply curve to the right. b. supply curve to the left. c. demand curve to the right. d. demand curve to the left.
Nonactivists hold that
A) activist monetary policies are likely to be destabilizing rather than stabilizing. B) economic fine-tuning is quite feasible. C) flexibility in wages and prices is sufficient to allow the economy to return at a reasonable speed to full-employment output. D) a and c E) all of the above