Economists believe that the same explanation for the rapid growth of costs applies to services, theatrical performances and restaurant meals
a. True
b. False
Indicate whether the statement is true or false
True
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The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would reinforce each other to achieve that objective?
A. Buying government securities and raising the reserve requirement. B. Selling government securities and raising the discount rate. C. Buying government securities and lowering the discount rate. D. Selling government securities and lowering the discount rate.
Since 1967, there has not been much change in the income of the bottom 10% of earners in the U.S. economy. This can be attributed to:
A) the adoption of labor-saving technology. B) the cultural and social changes in the economy. C) the adoption of labor-complementary technology. D) the adoption of skill-biased technology by most firms.
If consumers are less willing and able to pay for each level of output than they were previously, then apparently: a. demand has increased
b. supply has increased. c. demand has decreased. d. there has been a movement down along the demand curve.
The law of demand states that
a. demand increases when income increases b. quantity demand decreases when prices of related goods increase c. quantity demanded increases when price decreases d. demand is the willingness to buy products e. demand increases when population increases