Everything else held constant, a change in workers' expectations about inflation will cause ________ to change
A) aggregate demand
B) short-run aggregate supply
C) the production function
D) long-run aggregate supply
B
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If Billy's reservation price on a snowboard is $250, how many snowboards would he buy if the market price of snowboards is $500?
A. 0 B. 1 C. 2 D. The amount of snowboards purchased would depend on Billy's income.
An increase in AD will trigger more inflation under which of the following conditions?
a. AD is relatively steep. b. AD is relatively flat. c. AS is relatively steep. d. AS is relatively flat.
A 4 percent reduction in the price of a product has zero effect on the dollar amount of consumer expenditure on the product. The price elasticity of demand is:
A. Zero B. Greater than zero C. Greater than zero but less than 1 D. Equal to 1
Which of the following statements is true?
A. If the number of unemployed falls and the number of people in the labor force rises, the unemployment rate falls. B. Both liberals and conservatives feel that the official unemployment rate is too low. C. Greater participation by young people in the labor force tends to push the unemployment rate down. D. The unemployment rate for blacks is virtually the same as it is for whites.