Stagflation is defined as:
a. the simultaneous occurrence of high inflation and high unemployment.
b. high inflation accompanied by falling interest rates.
c. declining GDP accompanied by a stable price level.
d. a persistent decline in the price level that is unresponsive to monetary and fiscal policies.
the simultaneous occurrence of high inflation and high unemployment.
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Recent research estimates that the short-run price elasticity of demand for gasoline in the U.S. is -0.3, and the long-run price elasticity of demand is -1.4. What happens if the govenment increases the federal gasoline tax?
A) Consumer expenditures on gasoline increase over the short run and long run B) Consumer expenditures on gasoline decline over the short run and increase over the long run C) Consumer expenditures on gasoline increase over the short run and decline over the long run D) Consumer expenditures on gasoline decrease over the short run and long run
Bundle A contains 10 units of good X and 5 units of good Y. Bundle B contains 5 units of good X and 10 units of good Y. Bundle C contains 10 units of good X and 10 units of good Y. The consumer is indifferent between bundle A and bundle B. Assume that the consumer's preferences satisfy the four properties of indifference curves. Which of the following statements is correct?
a. The consumer must prefer bundle C to either bundle A or B. b. Bundle A and bundle B lie on the same indifference curve. c. The consumer must prefer bundle B to bundle C. d. Both a) and b) are correct.
The lack of a universal productivity effect of higher education was demonstrated by the experience of
A. the United Kingdom. B. Ireland. C. France. D. the Soviet Union.