The market for smartwatches is becoming very competitive. The increase in competition in this market is an example of how the market responds to
A) changes in population.
B) increases in income.
C) changes in consumer tastes.
D) decreases in the price of smartphones (a substitute for the product).
Ans: C) changes in consumer tastes.
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When an aggregate demand shock hits the economy ________
A) there is no conflict for the central bank between pursuing price or output stability because of the divine coincidence B) the same long-run equilibrium real interest rate is reached whether the central bank intervenes or not C) the long-run level of output is unaffected D) all of the above E) none of the above
What is market failure? How can the government correct market failure?
What will be an ideal response?
Between 1960 and 1995, Social Security benefits:
A. decreased from 35 percent down to 10 percent. B. increased from 10 percent to 35 percent. C. increased, decreasing the poverty rate among the elderly from 35 percent down to 10 percent. D. decreased, increasing the poverty rate among the elderly from 10 percent to 35 percent.
In the countries that have adopted inflation targeting, the inflation rate has typically
A) increased. B) decreased. C) decreased to zero. D) not changed.