Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:
a. excess quantity of money demanded.
b. excess quantity of money supplied.
c. new equilibrium interest rate.
d. decrease in the demand for loans.
b
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Coffee and donuts are complements in consumption. Suppose bad weather in the coffee producing regions of the world, which shifts the coffee supply curve leftward
How do the general equilibrium price and quantity outcomes compare to the partial equilibrium outcomes for this situation? A) General equilibrium price and quantity are higher B) General equilibrium price is higher and quantity is lower C) General equilibrium price is lower and quantity is higher D) General equilibrium price and quantity are lower
In the long run, if an economy's consumption spending is $5 trillion, its planned investment is $2 trillion, government spending is $1 trillion, net tax revenue is $1 trillion, and household savings are $2 trillion, total output should be
a. $3 trillion b. $5 trillion c. $7 trillion d. $8 trillion e. $11 trillion