A subsidy to wheat farmers will
A) increase the quantity of wheat demanded.
B) decrease the quantity of wheat supplied.
C) increase the supply of wheat.
D) leave both the supply and demand of wheat unchanged.
Answer: C
Economics
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Models that focus on factors such as technology shocks rather than "monetary" explanations of fluctuations in real GDP are called
A) rational expectations models. B) real business cycle models. C) short-run macroeconomic models. D) nonmonetary business cycle models.
Economics
In the classical theory of employment, a rise in the rate of interest will
A. increase saving and decrease investment. B. decrease saving and increase investment. C. increase saving and investment. D. decrease saving and investment.
Economics