If the income elasticity for canned food is 0.8, then canned food is an inferior good
Indicate whether the statement is true or false
FALSE
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In the presence of inflation in the U.S., accountants incorrectly measure firms' earnings but the tax code correctly measures real incomes
a. True b. False Indicate whether the statement is true or false
In the above figure, the opportunity cost of moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles is
A. 50 guitars. B. 25 ukuleles. C. 25 guitars. D. 75 ukuleles.
The economy is in a recession and the housing market is in a slump. As a result of this, a real estate firm lays off half of its real estate agents. This is an example of
A. natural unemployment. B. structural unemployment. C. frictional unemployment. D. cyclical unemployment.
With cost-push inflation in the short run, there will be:
A. An increase in real GDP B. A leftward shift in the aggregate demand curve C. A decrease real GDP D. A decrease in unemployment