Refer to Figure 5-1. The efficient equilibrium price is
A) $60. B) $50. C) $40. D) < $40.
B
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The elasticity of demand is determined partly by whether the good is a necessity or a luxury.
Answer the following statement true (T) or false (F)
On the long-run aggregate supply curve
A) an increase in the price level reduces the aggregate quantity of GDP supplied. B) an increase in the price level has no effect on the aggregate quantity of GDP supplied. C) an increase in the price level increases the level of potential GDP. D) an increase in the price level increases the aggregate quantity of GDP supplied.
What effect would a Federal balanced budget requirement have on automatic stabilizers?
a. They would be stopped because in a recession automatic stabilizers increase the deficit by automatic spending. b. They would be stopped because in a recession automatic stabilizers decrease the deficit by automatic spending. c. They would become more important because in a recession they would increase spending and taxes automatically. d. They would become more important because in a recession they would decrease spending and taxes automatically.
A pie chart is a way to display information regarding two variables
a. True b. False Indicate whether the statement is true or false