When the Market Price Is Above Equilibrium Then ____ and When

question 268

Multiple Choice

When the market price is above equilibrium then ____ and when the market price is below equilibrium, then ____.

• A)quantity demanded is greater than quantity supplied; quantity supplied is greater than quantity demanded.
• B)quantity supplied is greater than quantity demanded; quantity supplied is greater than quantity demanded.
• C)quantity supplied is greater than quantity demanded; quantity demanded is greater than quantity supplied
• D)the market is in equilibrium; the market is in equilibrium.

Grasp the theory of rational expectations in forecasting future economic conditions.

Analyze the impact of monetary policy announcements on inflation expectations and Phillips curves.

Examine the effects of economic crises on price levels and output.

Understand the role and effects of contractionary monetary policy on disinflation.

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Definitions:

Massachusetts Bay Company

A joint-stock trading company chartered in 1629 to establish a colony in New England; played a key role in the settlement and development of Massachusetts.

Dutch West India Company

A chartered company of Dutch merchants in the 17th century that established and directed trade throughout the Atlantic, including the slave trade and the settlement of New Netherland, now New York.

Powhatan

The leader of the Powhatan Confederacy, a network of tribal nations in what is now Virginia, who played a significant role in the early interactions between Native American peoples and English settlers in the 17th century.

St. Augustine

St. Augustine is a historic city in Florida, known for being the oldest continuously inhabited European-established settlement in the continental United States.