The widespread fall in the prices of homes caused consumers to:
A. decrease their spending, as they struggled to pay back debt.
B. increase their spending, as they devoted their money to things other than homes.
C. decrease their spending, and increase their debts.
D. increase their spending, as saving was viewed as a bad investment.
A. decrease their spending, as they struggled to pay back debt.
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The Phillips curve represents an inverse relationship between the inflation rate and the unemployment rate
a. True b. False Indicate whether the statement is true or false
The agricultural nation of Luckidom is attempting to answer the three fundamental economic questions. Develop the three questions as they relate to this nation.
A. 1. Should we produce more wheat and fewer soybeans? 2. Should we farm with equipment or by hand? 3. Do the farmers or the governors receive a higher salary? B. 1. Should we farm with equipment or by hand? 2. Do the farmers or the governors receive a higher salary? 3. Should we grow near the riverbed or by the coast? C. 1. Do the farmers or the governors receive a higher salary? 2. Should we grow near the riverbed or by the coast? 3. Should we produce more wheat and fewer soybeans? D. 1. Should we grow near the riverbed or by the coast? 2. Should we produce more wheat and fewer soybeans? 3. Should we farm with equipment or by hand?
Which of the following was not one of the likely causes of the productivity problem in the 1970s?
A. the increase in energy prices in the 1970s B. a slowdown in investment spending C. high saving rates D. an increase in government regulation
A perfectly elastic demand implies that
a. buyers will not respond to any change in price. b. any rise in price above that represented by the demand curve will result in a quantity demanded of zero. c. quantity demanded and price change by the same percent as we move along the demand curve. d. price will rise by an infinite amount when there is a change in quantity demanded.