If gas prices suddenly change from $2 a gallon to $4 a gallon, local stores with higher prices are ________ to have a(n) ________ in the number of customers.
A) not likely; change
B) not likely; increase
C) likely; increase
D) likely; decrease
C) likely; increase
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In general, the __________ the welfare payment, the __________ the incentive to find work.
a. higher, high
b. lower, lower
c. lower, higher
Which of the following is NOT a reason that real GDP is a poor measure of a nation's economic welfare?
A) Real GDP omits measures of political freedom. B) Real GDP does not take into account the value of people's leisure time. C) Real GDP does not include the underground economy. D) Real GDP overvalues household production.
If Figure 4-8 above is to show the result of a "fully accommodating" monetary policy following a shift of the IS curve from IS0 to IS1, what is the initial level of real income and interest rate before these changes?
A) 3500; 7.5%. B) 4500; 12.5%. C) 5500; 7.5%. D) 4500; 2.5%.
The above figure shows supply and demand curves for apartment units in a large city. The area "c" represents
A) the loss in consumer surplus if a rent ceiling of $350 is imposed. B) a transfer from producers to consumers if a rent ceiling of $350 is imposed. C) a transfer from consumers to producers if a rent ceiling of $350 is imposed. D) the total revenue received by supplying Q1 units.