We would expect the cross-price elasticity of demand between two different brands of flour to be
a. negative with a high absolute value
b. negative with a low absolute value
c. zero
d. positive with a low absolute value
e. positive with a high absolute value
E
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If economists forecast a decrease in aggregate expenditure, which of the following is likely to occur?
A) Inventories will fall. B) GDP will rise. C) GDP will fall. D) Wages will rise.
Explain why GDP was never intended to be a measure of social well being
What determines the position and shape of a society's production possibilities frontier?
a. the physical resources of that society b. the skills of the workforce c. the level of technology of the society d. the amount of factories in the society e. All of the above are correct.
To move quickly to turn around the crisis during 2007-2008, the U.S. Federal Reserve relied on:
a. lowering taxes. b. removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers. b. tightening up credit rules and keeping banks out of trouble. d. admonishing the administration for its excessive debt situation.