Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-year period because
a. buyers tend to be much less sensitive to a change in price when given more time to react.
b. buyers tend to be much more sensitive to a change in price when given more time to react.
c. buyers will have substantially more income over a ten-year period.
d. the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline.
B
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Two countries, Baltonia and Polonia, have aggregate production functions of the form:
Y = A × K1/3 × H2/3 Both countries have the same number of efficiency units of labor and use the same technology. However, Baltonia has a lower capital stock than Polonia. Which of the following is likely to be true in this case? A) The poverty rate in Baltonia is lower than that in Polonia. B) The gross domestic product of Baltonia is lower than that in Polonia. C) The gross domestic product of Baltonia is higher than that in Polonia. D) The Human Development Index of Baltonia is higher than that of Polonia.
How does a fall in the money wage rate affect the aggregate supply curve?
What will be an ideal response?
How did the increase in the interest rates in the early 80s contribute to the S&L crisis?
What will be an ideal response?
If top government officials claim that more people are working now than ever before, then which of the following is true? a. The unemployment rate is lower now than ever before
b. The number of people unemployed is lower now than ever before. c. The employment rate is higher now than ever before. d. The number of people in the labor force is higher now than ever before. e. The number of people employed is higher now than ever before.