If Price Is Above the Equilibrium Value,then

question 99

Multiple Choice

If price is above the equilibrium value,then

• A) producers hope that buyers will want more in the future.
• B) buyers are unhappy because they are unable to find the good for sale.
• C) producers find their inventories growing and will start to cut price.
• D) neither buyers nor sellers have an incentive to alter their behaviour.
• E) the government must enforce price controls.

Understand the role and actions of the Federal Reserve in countering economic fluctuations.

Calculate the impact of changes in government spending and taxation on aggregate demand using the concept of the multiplier.

Analyze the effect of temporary versus permanent tax cuts on aggregate demand.

Identify the factors influencing the shift in the aggregate demand curve due to changes in fiscal and monetary policy.

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Definitions:

Protest Movements

Collective efforts of individuals or groups to express opposition to, or demand changes in, political, social, economic, or environmental issues.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression, which sought to encourage industrial growth and improve labor conditions.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States.