For an economy at full employment, an increase in the quantity of money will lead to which of the following sequences of shifts in aggregate demand and supply curves?
What will be an ideal response?
increased aggregate demand, decreased short-run aggregate supply, constant long-run aggregate supply
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Ice cream can be frozen. In the short run the magnitude of the own price elasticity of demand for ice cream:
A) is higher than in the long run. B) is lower than in the short run. C) is the same as in the long run. D) does not depend on the fact that ice cream can be frozen.
In a competitive industry, the competitive firm's profits are
a. independent of the industry in which they compete b. closely linked to the industry in which they compete c. determined only by their own differentiated product d. determined solely by the inelastic demand for their product
When a motorist speeds down the road at well above the posted limit, economists believe that the principle of ____ may be directing his actions
a. rent seeking b. defective telescopic faculty c. moral hazard d. resource misallocation
The official U.S. poverty line for a family is calculated by taking 3 times the annual cost of:
a. utilities and transportation. b. basic medical care. c. a minimal diet. d. public housing.