Once an equilibrium is achieved, it can persist indefinitely because
A) shocks that shift the demand curve or the supply curve cannot occur.
B) shocks to the demand curve are always exactly offset by shocks to the supply curve.
C) the government never intervenes in markets at equilibrium.
D) in the absence of supply/demand shocks no one applies pressure to change the price.
D
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"Debt repudiation" occurs when
A) a government announces it will no longer run nominal deficits. B) a government announces it will no longer run real deficits. C) a government announces it will no longer honor its debt obligations. D) a central bank will no longer monetize the debt.
All the problems studied in economics arise from
a. the unequal distribution of income b. overpopulation c. the scarcity of resources d. inappropriate government action e. war