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Author Question: A binding price ceiling causes a shortage in the market. a. True b. False Indicate whether the ... (Read 68 times)

erika

  • Hero Member
  • *****
  • Posts: 522
on: Jun 30, 2018
A binding price ceiling causes a shortage in the market.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The federal government buys 10 million worth of aircraft engines from General Motors. If the MPC is .80 what will be the impact on aggregate demand, other things being equal?
 a. Aggregate demand will increase 8 million.
 b. Aggregate demand will increase 12.5 million.
  c. Aggregate demand will increase 18 million.
  d. Aggregate demand will increase 50 million.


chjcharjto14

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

d


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