Author Question: If, at the current price, there is a surplus of a good, then a. the quantity supplied is greater ... (Read 53 times)

lunatika · **on:** Jun 30, 2018

If, at the current price, there is a surplus of a good, then
a. the quantity supplied is greater than the quantity demanded.
b. the market must be in equilibrium.
c. the price is below the equilibrium price.
d. quantity demanded equals quantity supplied.

Question 2

Which of the following is not true with regard to the aggregate expenditure model?
a. It explains short-run business cycles.
b. It explains inflation.
c. It assumes that consumption spending is the primary determinant of aggregate demand.
d. It includes investment, government spending, and net exports.