Because the natural rate of unemployment is not known precisely, policymakers who use it as a guide for policy must be
A. more aggressive with policy changes than they would be if they knew the value of the natural rate.
B. less aggressive with policy changes than they would be if they knew the value of the natural rate.
C. ready to change policy more quickly.
D. aware of other data.
Answer: B
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When the price of a product increases from $35 to $45, the quantity supplied increases from 30 units to 40 units per week. Using the midpoint method, the price elasticity of supply is
A) 0.00. B) -1.1. C) 1.14. D) 1.35. E) 0.88.
The shortage created by a rent ceiling below the equilibrium rent is smallest when the demand for housing is ________ and the supply of housing is ________
A) elastic; elastic B) elastic; inelastic C) inelastic; elastic D) inelastic; inelastic E) unit elastic; unit elastic
On January 1, 2015, United Delivery had trucks valued at $1.3 million. During 2015, United Delivery purchased new trucks valued at $500,000. If the value of the trucks on December 31, 2015 was $1
5 million, what is the amount of its net investment and its depreciation during 2015?
The CB radio was very popular in the 1970s and 1980s for communicating while driving. People bought them because other drivers had them too and they could therefore talk with many others on their trips. This illustrates
A) that the demand curve for CB radios was inelastic. B) the network effect. C) that CB radios and gasoline are complementary goods. D) the effects of mobile phones on the demand curve for CB radios.