In measuring the sensitivity of demand, the
a. price and income elasticities refer to movements along the demand curve; other elasticities refer to shifts of the entire demand curve
b. price and cross-price elasticities analyze movements along the demand curve; other elasticities refer to shifts of the entire demand curve
c. income and cross-price elasticities refer to movements along the demand curve; price elasticity refers to shifts of the entire demand curve
d. price elasticity refers to movements along the demand curve; income and cross-price elasticities refer to shifts of the entire demand curve
e. income elasticity refers to movements along the demand curve; other elasticities refer to shifts of the entire demand curve
D
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Explain the difference between a normal good and an inferior good
What will be an ideal response?
In effect, the U.S. does subsidize high-tech firms by subsidizing R&D. This is done through
A) the budget of the Department of Education. B) systematic protection through the levying of tariffs. C) systematic protection through the establishment of NTBs. D) relatively accelerated "depreciation" of R&D investment in the Federal tax codes. E) subsidies for high-tech firms.
In the aggregate expenditures model, a tax increase causes a(n):
a. upward shift in the aggregate expenditures curve. b. downward shift in the aggregate expenditures curve. c. shift in the 45-degree line. d. rightward movement along the aggregate expenditures curve. e. leftward movement along the aggregate expenditures curve.