Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been
A. an increase in supply and a decrease in quantity demanded.
B. a decrease in both supply and demand.
C. a decrease in supply and a decrease in quantity demanded.
D. a decrease in demand and a decrease in quantity supplied.
Answer: D
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The fiscal and monetary policy alternative to fine-tuning is
A) abandonment of both fiscal and monetary policy. B) abandonment of fiscal policy in favor of exclusive reliance on monetary policy. C) budgets established for the long term and a steady growth rate for the money stock. D) price and wage controls. E) redistribution of income in favor of those with a higher propensity to spend.
If the industry in the above figure was perfectly competitive, the level of output would
A) be less than the single-price monopoly level of output. B) be the same as the single-price monopoly level of output. C) exceed the single-price monopoly level of output by 20 units per day. D) exceed the single-price monopoly level of output by 60 units per day.