FIGURE 6-4 -In Figure 6-4 Above, as the Number of Buyers Increases

question 119

Multiple Choice

FIGURE 6-4
-In Figure 6-4 above, as the number of buyers increases, the price

• A)increases.
• B)decreases.
• C)stays the same.
• D)has no relation to the number of buyers.
• E)fluctuates depending on economic conditions.

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Definitions:

Fiscal Policy

Government policies regarding taxation and spending that are employed to influence economic conditions, including stimulating or restraining economic growth.

Multiplier

An economic factor that quantifies the additional effect on income or output resulting from an injection of spending.

Deflationary Gap

A situation in economics where actual production is lower than the potential output level, often resulting in unemployment and unused productive capacity.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.