An inferior good has an income elasticity of demand that is
A. positive but less than 1.
B. zero.
C. negative.
D. positive.
Answer: C
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Indicate whether the statement is true or false
Almost 85 percent of American firms have less than
A. 20 employees. B. 100 employees. C. 500 employees. D. 1,000 employees.
The Reagan administration's experiment with supply-side economics produced a historic period of economic expansion that was accompanied by:
a. falling real interest rates. b. high unemployment rates. c. a dramatic increase in the federal government's budget deficit. d. a reduction in the U.S. trade deficit. e. All of the above.
A movement up the Phillips curve will cause
A. A decrease in both unemployment and inflation. B. A trade-off between unemployment and inflation. C. An outcome known as stagflation. D. An increase in both unemployment and inflation.