If the government set a price floor at $18
A. there would be a temporary surplus, then prices would fall to equilibrium.
B. the price floor would not have any effect on this market.
C. then quantity demanded would be greater than quantity supplied.
D. there would be a permanent surplus, at least until the price floor was lifted.
B. the price floor would not have any effect on this market.
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The dawning of the computer age in the latter part of the 20th century created a new and massive growth spurt in the United States that illustrates what some economists describe as the
a. real growth theory b. accelerator phenomenon c. start of an innovation cycle d. interaction of the multiplier and accelerator e. Adam Smith economic growth theory
Large economies, such as the U.S. economy, should ________ adopt a flexible exchange rate, because giving up the power to stabilize the domestic economy via monetary policy ________.
A. nearly always; comes with a high cost B. nearly always; is of little consequence C. almost never; is of little consequence D. almost never; comes with a high cost