List prices on new cars do not change very often, so
A) the real price of cars is very inflexible.
B) the prices of new cars can only be flexible if there are changes in the cost of materials.
C) price flexibility is not an important feature in the auto market.
D) price flexibility shows up primarily through the negotiations between buyers and sellers.
D
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In the fooling model, what is held constant along a SAS curve?
A) the expected price level B) the nominal wage rate C) the expected price level and the nominal wage rate D) the real wage rate E) the nominal and real wage rates
The government can potentially improve market outcomes if market inequalities or market failure exists
a. True b. False Indicate whether the statement is true or false
When the government goes from running a balanced budget to running a budget surplus,
a. national saving decreases, the interest rate rises, and the economy's long-run growth rate is likely to decrease. b. national saving increases, the interest rate falls, and the economy's long-run growth rate is likely to decrease. c. national saving decreases, the interest rate rises, and the economy's long-run growth rate is likely to increase. d. national saving increases, the interest rate falls, and the economy's long-run growth rate is likely to increase.
Which of the following would result in a movement along the demand curve?
A) a change in preferences B) an increase in the number of buyers C) an increase in the number of suppliers D) a decrease in income