We depart from the assumptions of classical economics when we focus on the relationship between
a. the quantity of output and the price level.
b. the quantity of output and the unemployment rate.
c. the price level and the inflation rate.
d. inflation and the nominal interest rate.
a
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Which sector consists of services traded for food, shelter, housing or other services?
(a) tertiary (b) secondary (c) primary (d) international
An economist says, "Technological advances have the power to lower the prices of many of the goods we buy." Here is how this works:
A) Technological advances lead to lower demand, which leads to lower prices. B) Technological advances lead to greater supply, which leads to lower prices. C) Technological advances lead to greater quantity supplied, which leads to lower prices. D) Technological advances lead to lower taxes, which lead to greater supply, which leads to lower prices. E) Technological advances lead to higher taxes, which lead to fewer subsidies, which lead to greater supply, which leads to lower prices.
When interest rates fall
a. firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
b. firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding.
c. firms want to borrow less for new plants and equipment and households want to borrow more for homebuilding.
d. firms want to borrow less for new plants and equipment and households want to borrow less for homebuilding.
A shortage will occur if a ________ is set ________ the equilibrium price.
A. price ceiling; below B. price floor; above C. price floor; below D. price ceiling; above