Changes in expenditures and taxes that occur through automatic stabilizers
A) shift the aggregate demand curve to the right in the event of an economic expansion.
B) shift the aggregate demand curve to the left in the event of an economic contraction.
C) do not shift the aggregate demand curve.
D) cause a movement up along the aggregate demand curve the event of an economic expansion
and a movement down along the aggregate demand curve the event of an economic contraction.
Ans: C) do not shift the aggregate demand curve.
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Robert put $15,000 into an account with a fixed interest rate two years ago and now the account balance is $16,917.66 . What rate of interest did Robert earn?
a. 4.5 percent b. 5.4 percent c. 6.2 percent d. 8.0 percent
You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that:
A. Each of the top four firms has 20 percent of industry sales B. The four largest firms account for a combined 80 percent of the industry sales C. The four largest firms account for 20 percent of industry sales D. Each of the four largest firms accounts for 5 percent of industry sales
If the elasticities of demand for alcohol, tobacco and gasoline are low and the elasticities of supply are high, then the burden of these taxes (excise taxes) falls more heavily on buyers than on sellers
Indicate whether the statement is true or false
Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?
A) The market wage for trained nurses is currently above the equilibrium wage. B) There is currently a surplus of nurses in this market. C) The market wage for nurses will eventually rise to the market clearing wage. D) The market will adjust very rapidly to correct this imbalance because anyone can be a nurse without any training.