If households purchase $60,000 worth of consumer goods and firms produce $50,000 worth of consumer goods, then
A) inventory changes are -$10,000.
B) inventory changes are +$10,000.
C) new capital goods expenditures (by firms) are $10,000.
D) consumer goods expenditures are $10,000.
A
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If the elasticity of demand for peaches is 1.76 and the elasticity of demand for apples is 1.59, then consumers are
A) more sensitive to a change in the price of peaches than they are to a change in the price of apples. B) less sensitive to a change in the price of peaches than they are to a change in the price of apples. C) more sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples. D) less sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.
Explain the excess burden of a tax on luxury yachts
Suppose the nominal interest rate is 5 percent, the tax rate on interest income is 30 percent, and the after-tax real interest rate is 2.1percent. Then the inflation rate is 2 percent
a. True b. False Indicate whether the statement is true or false
Frictional unemployment can be distinguished from other types of unemployment in that we assume all of the following except
A. The skills of the frictionally unemployed are no longer in demand. B. The frictionally unemployed possess the necessary education and skills to become employed. C. There is an adequate demand for labor to employ the frictionally unemployed. D. Search time is relatively short for frictionally unemployed persons.