An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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The marginal propensity to consume is always
a. greater than 1 b. between 0 and 1 c. less than 0 d. between 0 and -1 e. between 0 and 0.6
The ______________ the gap between the tuition a college student pays and the equilibrium tuition for that college, the _____________ likely the student's instructors will be on time and attentive during their office hours
A) larger; less B) smaller; more C) larger; more D) smaller; less E) a and b
According to Table 2.1, which presents hypothetical data on price elasticity of demand, which of the following is true about lamb?
A. Each 2.7% change in the price of lamb causes a 1% change in the quantity demanded of lamb.
B. The demand for lamb is inelastic.
C. Each 1% change in the price of lamb causes a 2.7% change in the quantity demanded of lamb.
D. Lamb is a normal good.
If two or more firms combine or conspire to monopolize trade, this would be in violation of the:
a. Federal Trade Commission Act. b. Clayton Act. c. Sherman Antitrust Act. d. Robinson-Patman Act.