When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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Economics only applies to
A. decision making by households. B. decision making by governments. C. decision making by business firms. D. all of these kinds of decisions.
A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way
a. True b. False Indicate whether the statement is true or false
Suppose total benefits and total costs are given by B(Y) = 600Y ? 12Y2 and C(Y) = 20Y2. What is the maximum level of net benefits?
A. 1916.4 B. 2,500.75 C. 2,812.5 D. None of the statements associated with this question are correct.
When a good has many close substitutes available, it is likely to be:
A. less price elastic than are goods with many complement goods available. B. more price elastic than are goods without close substitutes available. C. more price elastic than are goods with many complement goods available. D. less price elastic than are goods without close substitutes available.