Aggregate demand decreases and real output falls, but the price level remains the same. Which factor most likely contributes to downward price inflexibility?
A. The wealth effect.
B. Business taxes.
C. Fear of price wars.
D. The multiplier effect.
Answer: C
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In IS-LM analysis, the nominal interest rate is
A) purely a monetary phenomenon. B) purely a real phenomenon. C) both a monetary and a real phenomenon. D) neither a real nor a monetary phenomenon, but determined by government policy.
Dunston Military Academy has an annual deficit of $250,000. Its 1,000 students pay tuition of $10,000 each per year. The economics faculty has recommended solving the problem by recruiting additional athletes with $5,000 scholarships. Each additional athlete will cost the school $2,500 (equipment, etc.). Assuming the academy agrees, how many athletes are needed to eliminate the deficit?
A. Zero, the deficit cannot be eliminated by giving more scholarships. B. 25 C. 50 D. 100
If those accused of antitrust violations sign a consent decree, they have
a. agreed to stop doing what they are accused of doing b. admitted to guilt c. agreed to a court trial d. contested the charges against them e. charged the government with wrongdoing
The unionization rate of public sector workers is about:
A. 10.3%. B. 17.1%. C. 24.4%. D. 34.4%.