The market clearing price refers to the:
A. equilibrium price that quantity supplied is the highest possible.
B. price where quantity demanded and quantity supplied are the same.
C. minimum price at which items could be sold.
D. maximum price where all suppliers are willing to sell all their production.
B. price where quantity demanded and quantity supplied are the same.
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Suppose oil prices suddenly begin to rise and the Fed announces that the increase in oil prices are not expected to generate excessive inflation
If the Fed is incorrect in its assumption that rising oil prices will not generate excessive inflation and the inflation rate increases before the Fed takes corrective action, then other things equal, this would result in ________ and ________. A) the IS curve shifting to the right; a movement up the Phillips curve B) the IS curve shifting to the left; a movement down the Phillips curve C) the MP curve shifting up; a movement up the Phillips curve D) the MP curve shifting down; a movement down the Phillips curve
At the equilibrium level of income, it must be true that total
A. income equals total spending. B. product equals total output. C. output equals total inventory. D. income equals total saving.