In the long run, a 1% increase in real GDP tends to
A) cause a 1% increase in the demand for money.
B) cause a less than 1% increase in the demand for money.
C) cause a greater than 1% increase in the demand for money.
D) have virtually no effect on the demand for money, because the interest rate is the main determinant of the demand for money.
B
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Research by economists Martin Hackmann, Amanda Kowalski, and Jonathan Kolstad indicates that the individual mandate provision of the Massachusetts health care program was responsible for a(n) ________ in premiums and the mandate helped to ________
premium increases in subsequent years. A) increase; accelerate B) increase; hold down C) decrease; accelerate D) decrease; hold down
If demand is inelastic, a drop in price will raise total expenditure.
Answer the following statement true (T) or false (F)
A concentration ratio provides a better assessment of market power than the Herfindahl-Hirschman index does.
Answer the following statement true (T) or false (F)
Suppose that R. J. Reynolds raises the price of cigarettes by 10 percent. Although they have no requirement or agreement to do so, the other cigarette firms decide to raise their prices accordingly. This situation is best described as:
a. price leadership. b. a cartel. c. monopolistic competition. d. a market with kinked demand.