Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?
Correct answer: A. sell 4 million pounds of tin
- A. sell 4 million pounds of tin
- B. sell 8 million pounds of tin
- C. buy 4 million pounds of tin
- D. buy 8 million pounds of tin
Explanation
A 4-million-pound rightward shift in demand would raise the price unless supply also increased by 4 million pounds at the target price. The buffer-stock authority must therefore sell 4 million pounds of tin.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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