Refer to the above figure. A surplus will exist when

According to classical macroeconomists, prices adjust ________ to shocks, so the government should ________

A) slowly; do little B) rapidly; do little C) rapidly; fight recessions D) slowly; fight recessions

Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent and is paid before Albert. If Albert knew how much he

was going to receive before the check arrived, he most likely invested in a. common stock b. preferred stock c. indirect stock ownership d. mutual funds e. low-yield dividends