In the early 2000s, policy makers were able to:
A. run contractionary policy without causing a rise in unemployment.
B. run contractionary policy without causing deflation.
C. impose tariffs on foreign goods without causing retaliation by foreign countries.
D. run expansionary policy without causing inflation.
Answer: D
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When will setting a relatively high entry fee and a low competitive price be the best strategy for a two-part tariff monopolist?
a. When the customers are nearly identical. b. When the customers have inelastic demand for the product. c. When the customers place a relatively low value on their time. d. When the customers can be separated into a number of diverse groups.
Economists use the phrase "business cycle" when referring to fluctuations in
a. the rate of real output and employment. b. interest rates. c. the consumer price index. d. the general level of prices.
A rise in the price of foreign inputs leads to a
A) rightward shift of the AD curve. B) leftward shift of the AD curve. C) rightward shift of the SRAS curve. D) leftward shift of the SRAS curve.
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below: 
Assume that the income is $10,000, the price of the related good is $40, and Conlan chooses to set the price of this product at $30. At the prices and income given above, what is the price elasticity of demand?
A. -0.86 B. -0.43 C. -1.00 D. -2.40 E. -1.43