What type of statement is a prescriptive statement about how the world ought to be?
normative statement
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The price elasticity of new automobile purchases is about 1.2. This implies that an increase of $1,000 on a $10,000 automobile will
A. reduce the number of autos sold by approximately 1.2 percent. B. increase the consumer expenditures on autos by approximately 1.2 percent. C. reduce the number of autos sold by approximately 12 percent. D. increase consumer expenditures on autos by approximately 12 percent.
Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP falls below potential real GDP?
A) an increase in the supply of money B) an increase in individual income taxes C) a decrease in transfer payments D) an increase in government purchases
The reduction or covering of a foreign exchange risk is called
A) hedging. B) speculation. C) intervention. D) arbitrage.
Why does the supply curve of the perfectly competitive industry shift to the right whenever a new firm enters the industry?
What will be an ideal response?