Author Question: Which of the following best explains the source of consumer surplus for Good A? a. Many consumers ... (Read 18 times)

APUS57 · **on:** Jun 30, 2018

Which of the following best explains the source of consumer surplus for Good A?
a. Many consumers pay prices that are greater than the equilibrium price of Good A.
b. Many consumers would be willing to pay more than the market price for some units of Good A.
c. Many consumers think the market price of Good A is greater than its cost.
d. Many consumers of Good A place a value on it that is less than the market price.

Question 2

Which of the following is true?
a. When increased government purchases or expansionary monetary policy does give the economy a boost, no one knows precisely how long it will take to do so.
b. Given the difficulties of timing stabilization policy, an expansionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
c. If velocity changes, but it moves in a fairly predictable pattern, the connection between money supply and GDP is still fairly predictable.
d. All of the above are true.