Equilibrium

When the economy is in equilibrium,________________. a. there are increases in inventory b. there are decreases in inventory c. total expenditures equal total production d. people want to buy more than will be produced Suppose the economy's short-run equilibrium point is to the left of the National Real GDP. Which of ...continues

AD Curve

An increase in the Ml money supply may __________ total expenditures, leading to a __________ shift of the AD curve. a. increase; rightward b. increase; leftward c. decrease; rightward d. decrease; leftward Greater wealth makes __________ people willing to spend the national income, causing __________ the economy's A ...continues

GDP

If Real GDP is less than Natural Real GDP, the economy is in____________. a. an inflationary gap b. a recessionary gap c. an unemployment gap d. a real gap

Definitions

Please provide a economic definition for: 1. Inflationary gap. 2. Marginal propentsity to save 3. shortage 4. ceteris paribus 5. nominal income 6. imtermediate foo 7. purchasing power 8. law of increasing oppotunity costs

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As the price level rises, ceteris paribus, people holding some of their wealth in monetary form become______________. a. less wealthy and they buy less b. more wealthy and they buy more c. less wealthy and they buy more d. more wealthy and they buy less If think it is it is a? Which of the following will cause a m ...continues

Verifty Answers

The opportunity cost of attending college is____________. a. the money one spends on college tuition, books, and so forth b.the highest valued alternative one forfeits to attend college c. the least valued alternative one forfeits to attend college d. equal to the salary one will earn when one graduates from college ...continues

Verifty Answers

Points inside (or below) the PPF are____________. a. unattainable b. attainable and efficient c. attainable but inefficient d. attainable and neither efficient nor inefficient I say it is c, am I correct? An increase in resources_____________. a. shifts the PPF inward b. shifts the PPF outward c. moves the ...continues

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If the workers at a firm successfully negotiate a wage increase, a. The demand curve for the product the firm produces shifts rightward. b. The demand curve for the product the firm produces shifts leftward. c. The supply curve for the product the firm produces shifts rightward. d. The supply curve for the product the f ...continues

Illustrate, show supply and demand curves given the information below. Solve for equilibrium price and quantity. What will happen when price is not equal to its market-clearing level? Consider situation when demand curve changes and provide two reasons that might explain such shifts in aggregate demand.

Price Quantity Demanded Quantity Supplied $9 100 Million 40 Million $10 90 Million 60 Million $11 80 Million 80 Million ...continues

Rent Controls

Some 200 American cities have rent controls designed to protect residents from high housing prices. When city governments back the price of rental housing below the equilibrium price level, the amount of housing demanded by consumers exceeds the amount that landlords are willing to make available. Answer the following questions: ...continues