Author Question: When there is an excess quantity supplied of a product at the current price, then: a. the market ... (Read 47 times)

amal · **on:** Jun 30, 2018

When there is an excess quantity supplied of a product at the current price, then:
a. the market price must be below equilibrium price.
b. the quantity demanded is greater than the equilibrium quantity.
c. the market price will tend to rise.
d. the market price will tend to fall.

Question 2

If government spending increased by 200 billion and the MPC within the economy was 0.9, what would be the total impact on real GDP?
a. 180 billion increase
b. 222 billion increase
c. 380 billion increase
d. 2.0 trillion increase