Central banks are in a position to control risk in the economy because they:
A. control short-term interest rates.
B. can change taxes.
C. control the economy's real growth rate.
D. control the unemployment rate.
Answer: A
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Assume consumers eat either rice or pasta for dinner every night. If the price of rice increases, then one would expect to see:
A. an increase in the quantity of pasta demanded. B. a decrease in the demand for pasta. C. a decrease in the quantity of pasta demanded. D. an increase in the demand for pasta.
The higher wage rate received by garbage collectors to compensate for the lower desirability of their job
a. would not exist in a competitive labor market b. is a compensating wage differential c. is caused by union negotiators d. disappears in the long run e. only applies when the garbage collecting market is an oligopoly
A decrease in the price level in Japan will shift the U.S. aggregate demand curve outward
a. True b. False Indicate whether the statement is true or false
When we move along a given demand curve,
a. only price is held constant.
b. income and price are held constant.
c. all nonprice determinants of demand are held constant.
d. all determinants of quantity demanded are held constant.