When unemployment is above its natural rate, the inflation rate will eventually
A) increase.
B) become equal to the natural rate of unemployment.
C) move to its natural rate.
D) decrease.
D
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Who benefits from a subsidy to buyers?
A. Only sellers benefit from any kind of subsidy. B. Only consumers benefit, since it is their subsidy. C. The benefit is shared depending on the elasticity of the supply and demand curves. D. None of these statements is true.
A shortage results when a a. nonbinding price ceiling is imposed on a market. b. nonbinding price ceiling is removed from a market. c. binding price ceiling is imposed on a market
d. binding price ceiling is removed from a market.
A horizontal demand curve is perfectly elastic because a change in price will induce an infinite change in quantity demanded
a. True b. False Indicate whether the statement is true or false
An individual's demand curve for a good is derived by varying the
a. income level and observing the resulting total utility derived from both goods. b. price of one good and observing the resulting quantities of the other good. c. budget line to the left and calculating the loss in total utility. d. price of one good and observing the resulting quantities demanded of that good.