Question 6 If the price of a gadget is currently below the equilibrium price, O

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Question 6 If the price of a gadget is currently below the equilibrium price, O there is a surplus and the price will fall to restore market equilibrium. O there is a shortage and the price will rise to restore market equilibrium O there is a shortage and the price will fall to restore market equilibrium. O there is a surplus and the price will rise to restore market equilibrium. Question 7 In years with inflation, nominal GDP increases real GDP O at the same rate as O sometimes faster, sometimes slower, and sometimes at the same rate as O slower than O faster than

Explanation / Answer

6) Second option. This is because when price is below the equilibrium price quantity demanded exceeds quantity supplied so that there will be an upward pressure on the price which rises to equilibrium

7) Last option. Since nominal GDP is calculated using current prices that implies inflation and real GDP does not, nominal GDP will rise faster than real GDP.

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