A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -0.1. The government must ________ the price of electricity by ________.
A. raise; 100.0%
B. raise; 10.0%
C. lower; 20%
D. raise; 1.0%
Answer: A
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A decrease in the real exchange rate will tend to ________ exports and to ________ imports.
A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase
According to your authors, market clearing
A) is planned by all buyers. B) is planned by all sellers. C) is planned by all buyers and sellers. D) is planned by economists and government agencies. E) is an unintended consequence of people pursuing their own plans.
The aggregate supply of labor is the
A) total amount of time a person works over his or her lifetime. B) total amount of time a person spends in the labor force over his or her lifetime. C) unemployment rate. D) sum of the labor supplied by everyone in the economy.
Government budget
What will be an ideal response?