________ could result in a recession because it would ________
A) An increase in government expenditures on goods and services; shift the AD curve to the right.
B) An increase in the quantity of money; shift the AS curve to the right.
C) An increase in investment; shift the AD curve to the right.
D) A tax cut; shift the AS curve to the left.
E) A rise in the price of oil; shift the AS curve to the left.
E
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If demand is elastic
A) then it changes very little in response to a price change. B) then it changes significantly in response to a price change. C) then demand is zero. D) then demand is infinite.
As concentration in an industry increases, the value of the Herfindahl index falls
a. True b. False
A 2009 Chevrolet model has more horsepower than the 2008 version and is included in the BLS basket of goods. BLS attempts to account for this change in the market basket by
a. dropping the good from the basket. b. substituting in a different vehicle with the same horsepower as the 2008 model. c. adjusting the share of the market basket allocated to transportation. d. adjusting the price of the good to account for the quality change.
In the aftermath of the Great Recession
A. deflation concerns have subsided in the U.S, Japan, and Europe. B. the U.S., Japan, and Europe are all experiencing deflation. C. the deflation of the early 2000s has been reversed. D. policymakers in the U.S., Japan, and Europe are working hard to avoid deflation.