Based on the table, the largest change in aggregate demand takes place during the ______.
a. change in government purchases
b. first change in consumption purchases
c. second change in consumption purchases
d. final change in consumption purchases
a. change in government purchases
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If wheat can be produced at a constant opportunity cost, then the supply of wheat is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
An inflationary gap will exist when the full employment level of GDP is
a. equal to equilibrium GDP. b. greater than equilibrium GDP. c. less than equilibrium GDP. d. greater than disposable income.
A new technology is developed for producing microwave ovens that reduces production costs by 10%. Which of the following is the most likely consequence of this technological change?
A. This new technology will not affect efficiency, but it will change the equilibrium price and quantity for this industry. B. Firms must adopt this new technology to remain efficient. C. Firms will continue to operate efficiently as long as no firm adopts this new technology. D. If firms do not adopt this new technology, then the economy will remain in general equilibrium, because firms will not change their price and output decisions.
BaseBall Inc. is a leader in the industry for baseball bats. If new firms enter the industry and BaseBall Inc. experiences a fall in market share, we can say that the product of the company is in the ________ phase.
A. maturity B. decline C. growth D. introductory