Which of the following would most likely move the economy into a recession in the short term?
A. The central bank printing less money than was expected.
B. Invention of a new product that most consumers want to buy.
C. Innovations in management that enhance worker productivity.
D. Congress passing a reduction in personal income tax rates.
Answer: A
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The gap between the actual and predicted values of a dependent variable is called
A) the error term. B) an exogenous factor. C) the residual. D) an endogenous factor.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Positive externalities include benefits received the seller but not benefits received by the buyer
a. True b. False Indicate whether the statement is true or false
The definition of cross elasticity of demand for two products X and Y is
A. percentage change in quantity of X demanded/percentage change in quantity of Y demanded. B. percentage change in price of Y/percentage change in quantity of X demanded. C. percentage change in price of Y/percentage change in price of X. D. percentage change in quantity of X demanded/percentage change in price of Y.