Figure 4-17 -Refer to Figure 4-17.If the Price Is $10,then There Would

question 491

Multiple Choice

Figure 4-17

-Refer to Figure 4-17.If the price is $10,then there would be a

• A) shortage of 400 units, and price would rise.
• B) surplus of 400 units, and price would rise.
• C) shortage of 600 units, and price would rise.
• D) surplus of 600 units, and price would rise.

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Definitions:

Cyclical Unemployment

Refers to the unemployment that occurs due to fluctuations in the economy or the business cycle, such as during a recession.

Budget Deficit

A budget deficit occurs when a government’s expenditures exceed its revenues within a given fiscal period, leading to the need for borrowing or using saved reserves.

Keynesian Model

An economic theory advocating for government intervention in the economy through fiscal policies to manage demand and address unemployment.

Creeping Inflation

A relatively low rate of inflation, such as the rate of less than 4 percent in the United States in recent years.