If goods are completely unrelated, their cross price elasticity will
A) be greater than one.
B) be less than one.
C) be equal to zero.
D) be negative.
Answer: C
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The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation. What did this technological change do the short-run supply curve?
A) It moved the economy down along a stationary short-run aggregate supply curve. B) It shifted the short-run aggregate supply curve to the right. C) It shifted the short-run aggregate supply curve to the left. D) It moved the economy up along a stationary short-run aggregate supply curve.
A VAR with k time series variables consists of
A) k equations, one for each of the variables, where the regressors in all equations are lagged values of all the variables B) a single equation, where the regressors are lagged values of all the variables C) k equations, one for each of the variables, where the regressors in all equations are never more than one lag of all the variables D) k equations, one for each of the variables, where the regressors in all equations are current values of all the variables
The paradox of thrift says that the more people try to save, the more
a. income rises, causing saving to rise more than intended b. consumption falls, causing saving to rise by more than intended c. consumption rises, causing saving to fall d. income falls, causing saving to remain unchanged or even fall e. income rises, causing saving to fall
An increase in the amount of money in circulation would cause a
A. movement up the aggregate demand curve. B. shift of the aggregate demand curve to the left. C. movement down the aggregate demand curve. D. shift of the aggregate demand curve to the right.