Recall the Application. If it is not known whether the decrease in price of illegal drugs is primarily due to a change in supply, a change in demand, or equal changes in both, the equilibrium quantity of drugs
A) will increase. B) will decrease.
C) will not change. D) may or may not change.
D
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Both an increase in employment opportunities and an increase in immigration lead to a shift to the right in the supply curve for labor
Indicate whether the statement is true or false
As price falls along the inelastic portion of a linear demand curve ________ decrease(s) while ________ increase(s).
A. only price; quantity demanded, consumer surplus, and consumer expenditures B. consumer surplus and price; quantity demanded and consumer expenditures C. quantity demanded and price; consumer surplus and consumer expenditures D. consumer expenditures and price; quantity demanded and consumer surplus
The Federal Reserve conducted the policy of quantitative easing primarily when
A) the interest rate was very sensitive to the change in the money supply. B) the interest rate was close to zero. C) the interest rate was relatively high. D) the interest rate was too erratic to be controlled.
In a recession, automatic stabilization ________ tax revenues and ________ the debt-GDP ratio
A) lowers, raises B) lowers, lowers C) raises, raises D) raises, lowers