If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then demand is:
a. elastic.
b. inelastic.
c. of unitary elasticity.
d. 0.
e. inferior.
b
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Nonactivists believe that ________
A) there is a very rapid self-correcting mechanism since prices and wages are very flexible B) lags to policy implementation are so long that even the "correct" policies may lead to undesirable consequences C) policy interventions should take place less frequently than what Keynesians advocate D) all of the above E) none of the above
Vertically integrated firms can use transfer pricing
A) to avoid government price controls. B) as a way to compensate managers for transferring among departments in a vertically integrated firm. C) to avoid paying market prices for inputs. D) to shift profit.
Which of the following people would be counted among the unemployed?
a. A new college graduate selling newspaper advertisements part time while looking for other work b. A new college graduate selling newspaper advertisements full time while looking for other work c. A new college graduate selling newspaper advertisements part time and not looking for other work d. A new college graduate who gets tired of selling newspaper advertisements and takes off on a motorcycle trip to Alaska e. A new college graduate not qualified for any of the jobs available in his small town