If the cross elasticity of demand for good x with respect to the price of good y is positive, then goods x and y are
A) normal goods.
B) inferior goods.
C) complements.
D) substitutes.
D
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Which of the following statements is true?
A) Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available. B) Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. C) Productive inefficiency implies that it is impossible to produce more of one good and no less of another. D) Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.
The economy is in long-run equilibrium when there is an incorrectly anticipated increase in aggregate demand brought about by expansionary monetary policy. Specifically, aggregate demand increases by less than people anticipate (bias upward). According to new classical theory, the price level will __________ and Real GDP will __________ in the short run. In the long run, the price level will be
__________ than it was before aggregate demand increased. A) rise; rise; lower B) rise; fall; higher C) rise; fall; higher D) fall; rise; lower E) rise; rise; higher
The demand curve for a product might shift as the result of a change in:
A. consumer incomes. B. consumer tastes. C. the prices of related goods. D. all of these.
Refer to the information provided in Figure 23.12 below to answer the question(s) that follow.
Figure 23.12Refer to Figure 23.12. Suppose AE1, AE2 and AE3 are not parallel. What is the value of Point B?
A. $900 million B. $800 million C. $700 million D. cannot be determined from the given information