When a price fails to reflect all the benefits of a product, too much of it is produced and/or consumed.
a. True
b. False
Indicate whether the statement is true or false
Question 2
When the economy is already operating at nearly full capacity, further fiscal or monetary stimulus will likely:
a. soften inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity.
b. trigger inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity.
c. soften inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity.
d. trigger inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity.
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