Which of the following is correct when a price floor is set above the equilibrium price?
a. quantity supplied is less than quantity demanded at the set price
b. quantity supplied is equal to quantity demanded at the set price
c. at the set price there will be a shortage
d. The market price is greater than the price floor
e. quantity supplied exceeds quantity demanded at the set price
E
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In 2008 and 2009, the quantity theory of money did a ________ job of predicting year-to-year changes in the inflation rate because ________
A) good; interest rates behaved predictably B) poor; the Fed changed the growth rate of the quantity of money too quickly C) poor; velocity of circulation plunged D) good; real GDP remained stable E) poor; the price level and the velocity of circulation did not change
The table above presents the production possibilities frontier for a nation
Using the information in the table, when moving from possibility C to D, the cost of 1 unit of a capital good in terms of the consumption goods forgone is ________ consumption goods per capital good. A) 10 B) 25 C) 15 D) 20 E) an undefined amount of