If you observe a market where quantity demanded doesn't equal quantity supplied, a logical conclusion is that:
A. the fallacy of composition is not operative in the market.
B. social and political forces are likely to exist.
C. the law of demand and supply do not hold in the market.
D. the invisible hand is the only force at work in the market.
Answer: B
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In the Solow growth model, if the level of investment is less than depreciation at the initial capital-labor ratio , then ?k is ________ and the capital-labor ratio ________ toward the steady-state capital-labor ratio
A) greater than zero; increases B) greater than zero; decreases C) less than zero; increases D) less than zero; decreases
Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to sell bonds
a. True b. False Indicate whether the statement is true or false