Which statement shows income as a factor affecting demand?
a. A factory in town gives its employees bonuses, and mall purchases increase.
b. Many people move into a suburb because it has affordable housing.
c. Advertising convinces people that jeans make them look overweight.
d. Meteorologists predict a winter with lots of snow, so shovel sales rise.
Answer: a. A factory in town gives its employees bonuses, and mall purchases increase.
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The primary criticism by Keynesians of the credibility argument for rules is that
A) reputations are a less costly method of gaining credibility. B) reputations are a less costly method of maintaining credibility. C) the cost of losing flexibility over policy choices may exceed the cost of gaining credibility. D) rules that reduce presidential and congressional influence over monetary policy could ultimately be harmful to the economy.
Schumpeter maintains that recessions provide businesspeople with incentives to advance technologically
Indicate whether the statement is true or false
If an economy produces 4,000 units of output with a price level of $2 and with a velocity of money of 8, we know that the money supply must be:
A. $1,000. B. $8,000. C. $2,000. D. $4,000.
Which of the following is a component of the Patient Protection and Affordable Care Act?
a. Charging a fine to individuals who do not have or want health insurance b. Requiring employers to buy health insurance from state-run exchanges c. Requiring employers with 30 or more employees to offer health insurance d. Charging a fine to doctors who do not participate in health insurance exchanges