Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. If pizza and beer are complementary goods, a decrease in the price of beer will cause a movement from Point B on demand curve D2 to
A. demand curve D1.
B. demand curve D3.
C. Point A on demand curve D2.
D. Point C on demand curve D2.
Answer: B
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Both classicals and Keynesians agree that policymakers
A) can exploit the Phillips curve in the short run. B) cannot exploit the Phillips curve in the short run. C) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. D) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
The entrepreneur
a. serves as a liaison between management and labor b. owns all of the factors of production c. allocates the risk and uncertainties of enterprise to others d. assumes the risk and uncertainties of enterprise e. earns more than labor
The benefits-received principle of taxation is most evident in:
a. progressive tax rates. b. excise taxes on gasoline. c. the personal income tax. d. the corporate income tax.
Which of these trends in the nominal and real interest rates has been observed in the U.S. economy? a. During the recession of 2009, the nominal interest rate was almost equal to the real interest rate. b. In the mid 1970s, the nominal interest rate
was very low while the real interest rate was very high. c. In the mid 1990s, the nominal interest rate was almost equal to the real interest rate. d. In the 1980s, the real interest rate was very low while the nominal interest rate was very high.