If fluctuations in economic activity emanate from the supply side, higher rates of inflation will be associated with higher rates of unemployment, and lower rates of inflation will be associated with lower rates of unemployment.

If the government establishes a price floor for agricultural products, then

A) consumers will pay a lower price for the products. B) consumers will increase the quantity that they are willing to consume. C) farmers will want to decrease their production. D) the government will need to purchase the resulting surplus. E) all of the above

Refer to the table below. If the world price is $5.00, there will be:

Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd) and Column 3 is the quantity supplied domestically (Qsd).



A. A domestic surplus of 100 units that will be exported
B. A domestic shortage of 100 units that will be imported
C. A domestic surplus of 200 units that will be exported
D. Neither a domestic surplus nor a shortage