The political business cycle refers to the possibility that:
A. recessions coincide with election years.
B. politicians will manipulate the economy to enhance their chances of being reelected.
C. there is more inflation during Democratic administrations than during Republican administrations.
D. incumbent politicians will be reelected regardless of the state of the economy.
Answer: B
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The price elasticity of supply for the Hope Diamond is zero because there is only one. Therefore, the supply curve for the Hope Diamond is
A. perfectly inelastic. B. unit elastic. C. elastic. D. perfectly elastic.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for Fruitopia, a soft drink
Which panel describes what happens in the market for Fruitopia when the price of Snapple, a substitute product, decreases? A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
A critical assumption for the simple money multiplier (1/ rrd) to hold is that
a. banks do not hold excess reserves. b. the public does not increase their level of currency holdings. c. the required reserve ratio has to be greater than one. d. both a and b. e. all of the above.
The difference between GDP and final sales equals
a. depreciation. b. exports. c. imports. d. net inventory change.