The demand for steak is ________ than is the demand for food because ________.
A. more price elastic; the scope of the market for steak is more broadly defined
B. more price elastic; the scope of the market for steak is less broadly defined
C. less price elastic; the scope of the market for steak is more broadly defined
D. less price elastic; the scope of the market for steak is less broadly defined
Answer: B
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A vertical curve that defines the level of full-employment or potential output based on a given amount of resources, efficiency, and technology in the economy is called:
A) the short-run aggregate supply curve. B) the long-run aggregate supply curve. C) the aggregate demand curve. D) none of the above.
Some economists believe that the behavior of unemployment in Europe and in the United States during the 1980s and 1990s
A) was the same because both markets experienced adverse labor market shocks. B) differed because the real wage in Europe was rigid. C) was the same because the real wage in Europe and the United States moved together. D) differed because the United States experienced adverse labor market shocks but Europe did not.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. producer surplus will change from (D + E) to (D + E + B + C).
B. producer surplus will change from (B + C + D + E) to D only.
C. producer surplus will change from (D + E) to (D + B).
D. producer surplus will change from (D + B) to (D + E).
If MPC = 0.80, how much should government spending change to increase real GDP by $500?
a. ?100. b. +80. c. ?80. d. +500. e. +100.