An increase in the number of producers will:
a. increase the market supply, because the price will rise.
b. increase the market supply only when market demand increases too.
c. increase the market supply, because market supply is the sum of all individual supply curves.
d. increase the market supply only if each supplier has an identical supply curve.
e. decrease the market supply, because firms compete with each other and each firm will supply more.
c
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Which product is most likely to have a built-in excise tax?
(A) Organic apples (B) High-pollutant gasoline (C) Running shoes (D) Clothing made locally
In the complete algebraic formulation of ISLM,
A) the government spending multiplier is greater than the tax mulitplier as long as b <1. B) the government spending mulitplier is less than the tax multiplier as long as b<1. C) monetary policy is always more powerful than fiscal policy. D) fiscal policy is always more powerful than monetary policy.