The above figure shows the demand and supply curves for housing. What would be the effects of a rent ceiling equal to $500 per month?
A) a surplus equal to 3,000 apartments
B) a shortage equal to 3,000 apartments
C) a shortage equal to 250 apartments
D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
B
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Which of the following statements is FALSE about the demand curve?
A) An increase in demand shifts the demand curve to the left, closer to the price axis. B) When only the price of a good changes, there is movement along the demand curve but no change in demand. C) A change in demand is graphically shown by shifting the entire demand curve. D) When demand decreases, there is a drop in the quantity demanded at each price.
The investment schedule is downward sloping and the saving schedule is upward sloping with respect to the interest rate. Suppose the equilibrium real investment per year at the market rate of interest is $1 trillion
How is this represented when real national income per year is on the horizontal axis? How is this incorporated into the consumption-function graph?