Why did the attempts by some airlines to introduce uniform pricing for all air trips in 1980s and 1990s fail?
As soon as new higher fares were announced, airlines began offering discounts on them. Competition turned the industry into a low-margin business which led to the bankruptcy of most of the old major airlines.
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The majority of American workers are employed in the service sector of the economy.
Answer the following statement true (T) or false (F)
As the real interest rate ________, the real investment spending ________
A) decreases; decreases B) increases; decreases C) increases; increases D) changes; does not change
In a 2-good model, if individuals in a group all have tastes that are quasilinear in good 1, then we can treat the group as if it was a single representative consumer.
Answer the following statement true (T) or false (F)
In the four-part diagram used to construct the IS curve, a decrease in the interest rate causes
A) an increase in Ap and induced saving but does not shift the IS curve. B) an increase in Ap and induced saving and shifts the IS curve to the right. C) a decrease in Ap, an increase in induced saving, and shifts the IS curve to the right. D) a decrease in Ap and a decrease in induced saving, but does not shift the IS curve.