The Keynesian theory is consistent with the business cycle fact that inflation is
A. countercyclical and leading.
B. countercyclical and lagging.
C. procyclical and lagging.
D. procyclical and leading.
Answer: C
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The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ________ decrease in the quantity demanded
A) 2 percent B) 5 percent C) 10 percent D) 50 percent
Which of the following was one the key factors sending the economy into the Great Recession?
a. declining home prices and rising foreclosure rates b. declining interest rates and declining lending c. declining labor participation rates and rising retirement rate d. none of the above were reasons for the Great Recession
What does the complete diagram represent, the bottom half and the top half put together?
a. business cycle in general b. the factor market c. circular flow in a free market economy d. household payments for the factors of production
Changes in U.S. citizens' holdings of long-term financial and physical assets in another country are reported in
A. the capital account. B. total exports of goods and services. C. the current account. D. the trade balance.