Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. Based on this information, we know that good X is a
A. complement for good Y and a normal good.
B. substitute for good Y and an inferior good.
C. complement for good Y and an inferior good.
D. substitute for good Y and a normal good.
Answer: D
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Estimates by economists of the natural rate of unemployment in the U.S. economy in the early 2000s run at about
a. 3.5% to 4.5%. b. 4.5% to 5.5%. c. 5.5% to 6.5%. d. 6.5% to 7.5%.
The creation of a new product or process, often facilitated by the knowledge of engineering and scientific relationships, is known as
a. invention. b. innovation. c. application. d. sublimation.
In the long-run, an increase in aggregate demand increases the price level, but not real GDP
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. The monopolist produces at an output level that is less than peak efficiency. B. The monopolist can sell more output only by raising price. C. The monopolist's demand and marginal revenue curves are identical. D. Price is read off the marginal revenue curve.