When PAE < Y the economic response should be:
A. there will be no change in aggregate production.
B. eventually production will increase.
C. eventually production will decrease.
D. the government will intervene by cutting down on taxes.
Answer: C
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Florida State University has just lowered the price of its season football tickets from $350.00 to $300.00. As a result, there was an increase in the number of season tickets purchased from 43,000 to 47,000
The price elasticity of demand for season tickets equals A) 1.71. B) 1.58. C) 0.71. D) 0.58.
If a U.S. shirt maker purchases cotton from Egypt, U.S. net exports
a. increase, and U.S. net capital outflow increases. b. increase, and U.S. net capital outflow decreases. c. decrease, and U.S. net capital outflow increases. d. decrease, and U.S. net capital outflow decreases.
Gross private domestic investment includes business:
A. purchases of capital goods, all new construction, and purchases of consumer durable goods. B. purchases of capital goods, all new construction, and inventory investment. C. purchases of capital goods, all new commercial construction, and inventory investment. D. purchases of all types of durable goods, all new construction, and inventory investment.
At full employment the unemployment rate equals the:
A. cyclical unemployment rate. B. structural unemployment rate. C. structural unemployment rate plus the cyclical unemployment rate. D. structural unemployment rate plus the frictional unemployment rate.