If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is
A) unit elastic. B) relatively inelastic. C) elastic. D) perfectly elastic.
C
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In the early 1960s, the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the trade-offs between: a. aggregate supply and aggregate demand. b. interest rate and investment. c. inflation and unemployment
d. monetary and fiscal policy. e. rule-making and discretionary policy.
Say's law will prevent recessions only if a critical assumption of the classical model holds: That the interest rate adjusts until saving is equal to business and government borrowing
a. True b. False
Which of the following is not included in a nation's balance of payments?
a. International interest and dividend earnings. b. International real estate transactions. c. Changes in a nation's money supply due to a new required reserve ratio. d. All of the above are included in the balance of payments.
If U.S. residents chose to travel overseas less due to concerns about the safety of foreign travel, then in the open-economy macroeconomic model
a. the demand for dollars in the market for foreign-currency exchange shifts right. b. the demand for dollars in the market for foreign-currency exchange shifts left. c. the supply of dollars in the market for foreign-currency exchange shifts right. d. the supply of dollars in the market for foreign-currency exchange shifts left.