Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
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The presence of discouraged workers
A. may cause the official unemployment rate to understate the true amount of unemployment. B. reduces the size of the labor force but does not affect the unemployment rate. C. may cause the official unemployment rate to overstate the true amount of unemployment. D. increases the size of the labor force but does not affect the unemployment rate.
What is meant by the geography hypothesis? How does it differ from the culture hypothesis?
What will be an ideal response?
Shaina and Mariah have a business that provides personal fitness training services. They know that after raising their prices from $50 to $75 per hour, the quantity of hours they spent delivering training services fell from 90 to 80 hours per week. The demand for their services is:
a. inelastic, with a price elasticity coefficient greater than one. b. inelastic, with a price elasticity coefficient less than one. c. elastic, with a price elasticity coefficient greater than one. d. elastic, with a price elasticity coefficient less than one.
Refer to the accompanying figure. For Chris, the opportunity cost of planting one bulb is removing:
A. 1/3 of a bag of trash. B. 1/25 of a bag of trash. C. 3 bags of trash. D. 25 bags of trash.