If you compared the short-run demand and long-run demand for education at your college, you would almost certainly find that
a. the long-run demand curve was steeper than the short-run demand curve.
b. a tuition increase would reduce enrollment more in the long run than in the short run.
c. a reduction in tuition would increase enrollment in the short run but not in the long run.
d. the short-run and long-run demand curves were identical.
B
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When the government cuts the income tax rate, the real wage rate paid by employers ________ and the real wage rate received by workers ________ and potential GDP ________
A) increases; increases; increases B) decreases; decreases; increases C) increases; decreases; increases D) decreases; increases; decreases E) decreases; increases; increases
An Oldsmobile dealer may turn to a __________ like GMAC for loans in purchasing vehicles for his inventory
A) investment bank B) broker-dealer C) bootstrap financing company D) captive finance company
If the average price level in 2002 was 1.25 relative to the base year in 1992, then:
a. a dollar in 2002 bought just 80 percent of the goods and services that a dollar bought in 1992. b. average prices were 80 percent higher in 2002 than in 1992. c. a dollar in 2002 bought 25 percent more goods and services than a dollar bought in 1992. d. average prices were 125 percent higher in 2000 than in 1992. e. purchasing power rose 25 percent between 1992 and 2002.
Which of the following items are included in GDP?
A. unemployment benefits B. used cars C. newly built homes D. all transactions involving bonds