A shortage results when a
A. nonbinding price ceiling is removed from a market.
B. binding price ceiling is imposed on a market.
C. nonbinding price ceiling is imposed on a market.
D. binding price ceiling is removed from a market.
B. binding price ceiling is imposed on a market.
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The relationship between price and quantity supplied after firms fully adjust to any short-term economic profit or loss resulting from a change in demand is illustrated by the
a. long-run industry supply curve b. Dutch auction model c. short-run firm supply curve d. constant-cost industry supply curve e. short-run industry supply curve
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and the monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP rises and monetary base rises. b. Real GDP rises and monetary base falls. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.