Which of the following terms best characterizes the demand for health care?
A. Price elastic
B. Price inelastic
C. Income inelastic
D. Negative cross elasticity
B. Price inelastic
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In the table above, which case has the lowest relative price for a hamburger?
A) case A B) case B C) case C D) All three cases have an equal relative price for a hamburger.
Answer the following question with a starting point of simultaneous long run and short run macroeconomic equilibrium, with the overall production level in the economy at the natural rate level of real GDP (YNR). This equilibrium may be illustrated in a diagram with the average price level (P) measured on the vertical axis, and real GDP (Y) measured on the horizontal axis. The long run equilibrium is represented by the intersection of the vertical long run aggregrate supply function (LRAS), and the downward sloping aggregate demand function (AD). The short run equilibrium is represented by the intersection of the upward sloping short run aggregate supply function (SRAS), and the downward sloping aggregate demand function (AD). (See the diagram on the left panel.)
Question: If a recession were to occur as a result of an inward shift in the AD function (see the diagram on the right panel), the result is: A) A decrease in the average price level (P), and an increase in real GDP (Y). B) An increase in the average price level (P), and an increase in real GDP (Y). C) An increase in the average price level (P), and a decrease in real GDP (Y). D) A decrease in the average price level (P), and a decrease in real GDP (Y). E) No change in the average price level (P), and no change in real GDP (Y).
Speculative demand of money depends on:
a. Income b. Expenditure C. Interest rate d. None of the above.
According to Keynesian theory, which of the following is not true e of all short-term macro equilibria?
A. The aggregate demand curve intersects the aggregate supply curve. B. All macroeconomic goals are achieved. C. The economy may or may not be at full employment. D. Producers are selling everything they currently produce.