When the price of holiday lights increases 4 percent, the quantity supplied increases 3 percent. This example would have a(n) ______ supply curve.
a. equilibrium
b. unit
c. elastic
d. inelastic
d. inelastic
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A die is rolled and if the outcome is an even number, a gambler receives $10. If the outcome is an odd number, the gambler loses $10. What is the expected value of this game?
What will be an ideal response?
The U.S. government can play an important role in establishing the credibility of anti-inflation policy by
A) demonstrating fiscal responsibility. B) monitoring the Fed. C) conducting fiscal policy. D) all of the above.
Using Figure 1 below, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P3 and Y2.
C. P2 and Y1.
D. P3 and Y1.
Taxes and government spending that affect fiscal policy without specific action from policymakers are called:
A. automatic stabilizers. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.