When there is no deflation or inflation,
A. Relative prices remain unchanged.
B. Prices of all goods change by the same percentage.
C. Average prices do not change.
D. Full employment is achieved.
Answer: C
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Suppose the government imposes a small carbon tax on automakers. But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production
In the market for autos, these changes mean that supply and demand have both changed with the effect on the demand larger than the effect on the supply. The result is that the price of autos will ________ and the number of autos sold will ________. A) rise; perhaps change but we can't say if it increases, decreases, or stays the same B) rise; increase C) rise; decrease D) fall; perhaps change but we can't say if it increases, decreases, or stays the same E) fall; decrease
Between 1880 and 1980, which region had the highest per capita income?
a. Pacific. b. Midwest. c. New England. d. South Atlantic.
The cost of owning a government bond is ____________, and the benefit of owning one is ______________.
A. that it is as liquid as cash; interest earned B. interest earned; that it is not very liquid C. that it is highly liquid;interest charged D. interest charged; that it is not very liquid
Suppose an economy experience a 4% increase in each of the following variables: N, K, and H (human capital). Given this information, we know with certainty that
A) Y will increase by more than 4%. B) Y will increase by exactly 4%. C) Y will increase by less than 4%. D) Y will increase by less than 12% but by more than 4%. E) none of the above