The use of "introductory prices" suggests
A) firms engaged in multi-period decision making.
B) firms engaged in price gouging.
C) firms engaged in anti-competitive behavior.
D) firms engaged in single-period decision making.
A
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At the beginning of 2015, a country is at full-employment. During 2015, oil-producing countries decrease oil production leading to much higher oil prices. The higher oil prices can
A) increase aggregate demand and lead to an expansion. B) increase aggregate supply and lead to an expansion. C) decrease aggregate demand and lead to a stagflation. D) decrease aggregate supply and lead to a stagflation. E) decrease aggregate demand and lead to a higher price level.
The price of cabbage rises from $0.20 per pound to $0.30 per pound. The quantity of cabbage demanded falls from 800 pounds per week to 600 pounds per week. Use the midpoint formula to calculate the price elasticity of demand for cabbage
Is the demand elastic, inelastic, or unit elastic?
The most volatile GDP category under the expenditure approach is: a. wages and salaries
b. investment. c. consumption. d. government purchases.
Which of the following would be most likely to increase consumption spending?
a. A higher interest rate b. A drop in stock prices c. A reduction in consumer credit card debt d. The expectation of lower future prices e. An increase in the income tax rate