Which of the following would result if the price level were below the equilibrium level?
A. Aggregate supply would decrease.
B. Aggregate demand would increase.
C. Shortages would force sellers to lower prices in order to increase aggregate quantity demanded.
D. Consumers would bid prices up by competing for goods currently in shortage.
Answer: D
Economics
You might also like to view...
When Delta decides to quit flying to Lithuania, it directly answers the ________ question
A) what B) why C) for whom D) how E) when
Economics
If total deposits at Last Bank and Trust are $100 million, total loans are $70 million, and excess reserves are $20 million, then which of the following is the required reserve ratio?
a. 70 percent. b. 30 percent. c. 20 percent. d. 10 percent.
Economics