Over what range of prices does a surplus arise? What happens to the price when there is a surplus?
What will be an ideal response?
A surplus arises at market prices above the equilibrium price. A surplus causes the price to fall, decreasing quantity supplied and increasing quantity demanded until the equilibrium price is attained.
Economics
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Unplanned inventory depletion occurs when real GDP is above its equilibrium level
a. True b. False Indicate whether the statement is true or false
Economics
If the government were to increase taxes, it would be enacting:
A. contractionary fiscal policy. B. expansionary fiscal policy. C. contractionary monetary policy D. expansionary budgetary policy.
Economics