The demand for gasoline will respond more to a change in price over a period of five weeks than over a period of five years
a. True
b. False
Indicate whether the statement is true or false
False
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The central role of ________ in a market economy is bringing together savers and borrowers
A) sole proprietors B) financial intermediaries C) stock exchanges D) corporations
The assumption of short-run price stickiness implies:
a. that we must adjust nominal quantities for changes in inflation. b. that we must always allow for unexpected inflation. c. that expected inflation is zero and nominal quantities are the same as real. d. a balanced budget.
Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause
A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity.
The two primary objectives of the Fed are:
A) low and predictable levels of inflation, and interest rates above 10%. B) zero inflation, and zero unemployment. C) low and predictable levels of inflation, and zero unemployment. D) low and predictable levels of inflation, and maximum levels of employment.