With respect to the market clearing price and the equilibrium quantity for good X, an increase in the demand for and a decrease in supply of the good definitely will
A) increase the market clearing price and the equilibrium quantity of good X.
B) decrease the market clearing price and the equilibrium quantity of good X.
C) increase the market clearing price of good X but lower the equilibrium quantity of X.
D) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X.
D
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The short-run supply curve for a perfectly competitive firm is
A) the industry supply curve. B) its rising portion of the average-variable-cost curve. C) its entire marginal-cost curve. D) its marginal-cost curve above the average-variable-cost curve. E) its average-revenue curve.
All of the following are tools of fiscal policy except one. Which is the exception?
a. Taxes b. Transfer payments c. Interest rates d. Government purchases of goods e. Government purchases of services