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Question about Economics Multiple Choice Questions

If supply decreases along a given demand curve,
a. an excess quantity demanded will be created, increasing the equilibrium price and causing equilibrium quantity to fall
b. an excess quantity supplied will be created, lowering the equilibrium price and causing equilibrium quantity to rise
c. an excess quantity demanded will be created, raising the equilibrium price and quantity
d. an excess quantity supplied will be created, lowering the equilibrium price and quantity
e. price will fall, shifting the demand curve outward, raising the equilibrium quantity

Fiscal policy focuses on manipulating
a. aggregate demand to smooth out business fluctuations
b. aggregate supply to smooth out business fluctuations
c. both aggregate supply and aggregate demand to smooth out business fluctuations
d. aggregate demand to stimulate the economy and aggregate supply to contract it
e. short-run aggregate supply to stimulate the economy and aggregate demand to contract it

 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9208186

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