Unemployment will decrease over time if:
a. actual GDP increases faster than potential GDP.
b. actual GDP increases at the same rate as potential GDP.
c. acutal GDP remains the same but potential GDP increases.
d. actual GDP increases at a less than proportionate rate than potential GDP.
e. actual GDP decreases but potential GDP increases.
a
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The marginal propensity to consume is
a. disposable income divided by consumption. b. the change in consumption divided by the change in disposable income. c. consumption divided by disposable income. d. the change in disposable income divided by the change in consumption.
A shortage is eliminated when a. a binding price ceiling is removed
b. a binding price ceiling is enacted. c. a nonbinding price ceiling is repealed. d. a nonbinding price ceiling is imposed.
If the price of cheese falls by 1 percent and the quantity demanded rises by 3 percent, then the price elasticity of demand for cheese is equal to:
A. 0.333. B. 0.30. C. 30. D. 3.
If the Federal Reserve unexpectedly decides to sell bonds, which of the following will most likely happen in the short run?
What will be an ideal response?