Which of the following statements describes a surplus?
a. A surplus is the same as an excess demand.
b. A surplus occurs when the price is above equilibrium price.
c. A surplus occurs when the price is below equilibrium price.
d. A surplus occurs when the quantity demanded exceeds the quantity supplied.
b. A surplus occurs when the price is above equilibrium price.
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If the realized real interest rate in an economy is 6%, the realized inflation rate is 8%, and the expected inflation rate is 8%, then the nominal interest rate in the economy is:
A) 2%. B) 8%. C) 20%. D) 14%.
In the figure above, the demand curve shifts rightward from D0 to D1. There are no rent controls. In the short run, the increase in demand results in
A) higher rents and a decrease in the equilibrium quantity. B) lower rents and a decrease in the equilibrium quantity. C) higher rents and an increase in the equilibrium quantity. D) lower rents and an increase in the equilibrium quantity.