When quantity supplied is more than quantity demanded:
a. supply shock
b. shortage
c. excess supply
d. disequilibrium
e. search costs
Ans: c. excess supply
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Why is the multiplier for contractionary fiscal policy smaller in an open economy?
A) Contractionary fiscal policy reduces the deficit, which raises the interest rate, which raises the foreign exchange value of the dollar, which increases net exports. B) Contractionary fiscal policy increases the deficit, which raises the interest rate, which reduces the foreign exchange value of the dollar, which increases net exports. C) Contractionary fiscal policy reduces the deficit, which reduces the interest rate, which reduces the foreign exchange value of the dollar, which decreases net exports. D) Contractionary fiscal policy reduces the deficit, which reduces the interest rate, which reduces the foreign exchange value of the dollar, which increases net exports.
As a percentage of GDP, federal expenditures ________ from 1992 to 2001, ________ from 2001 to 2011, and have ________ since 2011
A) rose; fell; risen B) fell; fell; risen C) rose; rose; fallen D) fell; rose; fallen