In a typical college town, when students go home for the summer, the dem nd for many items such as pizza and In a typical college town, when students go home for the summer, the demand for many items such as pizza and
a. decreases, which is a shift to the left of the demand curves for these goods.
b. decreases, which is a shift to the right of the demand curves for these goods.
c. increases, which is a shift to the left of the demand curves for these goods.
d. increases, which is a shift to the right of the demand curves for these goods.
c. increases, which is a shift to the left of the demand curves for these goods.
d. increases, which is a shift to the right of the demand curves for these goods.
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Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?
A) Aggregate demand is growing too fast to keep the economy at full employment. B) Potential GDP is forecasted to be lower than equilibrium GDP. C) Potential GDP is forecasted to be higher than equilibrium GDP. D) Aggregate demand is growing too slowly and the economy is in danger of producing GDP above full employment.
Suppose each of the following news items appears on the evening news. Which one would most likely cause consumption spending to increase?
a. "Layoffs reach record high" b. "Government to increase taxes with the start of the next quarter" c. "Stock market drops 10%" d. "Government to issue tax rebates at the end of next month" e. "Bankruptcies increase 20% over the last six months"
A price elasticity of supply of 0.56 means that:
a. for every 10 percent change in price, quantity supplied will move in the same direction by 0.56 percent. b. for every 10 percent change in price, quantity supplied will move in the opposite direction by 0.56 percent. c. for every 10 percent change in price, quantity supplied will move in the opposite direction by 5.6 percent. d. for every 10 percent change in price, quantity supplied will move in the same direction by 5.6 percent.
Minimum wages are examples of
A) a price floor. B) a price ceiling. C) the rationing function of prices not working. D) government increasing the demand for certain products.