Sue consumes only sub sandwiches and Mountain Dew. Subs and Mountain Dew are complements. If the price of a sub sandwiches increases
A) Sue will move upward along her demand curve for subs.
B) Sue will move downward along her demand curve for subs.
C) Sue's demand curve for subs will shift leftward.
D) Sue's demand curve for subs will shift rightward.
A
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All of the following statements would make a reasonable hypothesis to test except
A) Long-run economic growth leads to higher real GDP per capita. B) An inflation rate below 3% is good for an economy. C) Increasing tax rates eventually lead to a decrease in work effort. D) Decreases in the unemployment rate lead to increases in the rate of inflation.
Intertemporal decisions involve economic decisions
A) made within a given period of time. B) made in between two periods of time. C) involving trade-offs across periods of time. D) that ignore concerns about the future.
As the price of good X increases from $5 to $8, quantity demanded falls from 100 to 80. Based upon this information we can conclude that the demand for X is
A) elastic. B) inelastic. C) unit inelastic. D) insufficient information for judgment.
What is the money multiplier? What are the factors that can affect the size of the money multiplier?