Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4
If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity? A) Excess demand equals 80 percent of the market equilibrium quantity
B) Excess demand equals 8 percent of the market equilibrium quantity
C) Excess demand equals 16 percent of the market equilibrium quantity
D) The policy does not affect the market quantity
B
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In the above figure, which movement illustrates the impact of a rising price level and a constant money wage rate?
A) E to I B) E to F C) E to G D) E to K
If the United States follows an expansionary monetary policy relative to Japan and Germany, which of the following is not likely to occur?
A) U.S. interest rates will rise relative to Japan and Germany B) a larger U.S. capital account deficit C) a depreciation of the dollar D) lower level of U.S. income
Figure 4-20
Refer to . The burden of the tax on buyers is
a.
$1.00 per unit.
b.
$1.50 per unit.
c.
$2.00 per unit.
d.
$3.00 per unit.
Cyclical unemployment is caused by
A. reducing international trade barriers, which causes some industries to expand employment and others to reduce employment. B. people entering the labor force to search for jobs. C. technological progress, which causes some industries to expand employment and others to reduce employment. D. recessions.