Related to the Economics in Practice on p. 550: In the simple "Keynesian" view, the economy has a
A. set price level.
B. clearly defined capacity.
C. horizontal aggregate demand curve.
D. downward sloping aggregate supply curve.
Answer: B
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Congress imposes a price ceiling in the market for gasoline. It is below the equilibrium price. This will:
a. Lead to a surplus of gasoline b. Lead to a shortage of gasoline c. Decrease the demand for gasoline d. Increase the demand for large cars
The Gini ratio in Brazil was over 0.6 in 1990 and fell to 0.5 in 2010. This change means that over this time inequality ________ and the Lorenz curve moved ________ the 45 degree line
A) increased; closer to B) increased; further away from C) decreased; closer to D) decreased; further away from
If good A had twice as many good substitutes as good B, but good B consumed twice the amount of a buyers income as good A, goods A and B would have the same elasticity of demand
a. True b. False Indicate whether the statement is true or false
The quantity demanded of Pepsi has decreased. The best explanation for this is that
A. the price of Pepsi has increased. B. Pepsi consumers had an increase in income. C. the price of Coca-Cola has increased. D. Pepsi's advertising is not as effective as in the past.