Which of the following purchases is most likely to rise as the result of a temporary tax cut, according to the permanent-income hypothesis?
A) television sets and other consumer durables
B) steak dinners and other consumer non-durables
C) trips to the Virgin Islands and other vacation destinations
D) theater tickets and other entertainment expenditures
A
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Of the following items, which has the most inelastic demand?
A) food B) fruit C) apples D) Gala apples
During a recession
A) incomes rise and employment decreases. B) incomes fall and unemployment increases. C) incomes fall and unemployment falls. D) incomes rise and unemployment increases.
New immigration laws championed by the Kennedy and Johnson administrations
a. established a quota system based on ethnic background. b. allowed for unlimited immigration. c. placed a high priority on uniting families. d. led to reduced immigration rates in the 1960s and 1970s. e. All of the above.
What phase of the business cycle immediately follows a recession?