Which of the following factors is NOT part of the budget equation?
A) relative prices
B) real income
C) quantities of goods
D) preferences
D
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The expenditure multiplier is larger than one because
A) an increase in autonomous expenditure induces further increases in aggregate expenditure. B) an increase in autonomous expenditure brings about a reduction in the real interest rate. C) additional expenditure induces lower incomes. D) an increase in autonomous expenditure induces further decreases in aggregate expenditure. E) the price level rises, thereby reinforcing the initial effect.
The long-run price elasticity of demand for electricity is ________ the short-run price elasticity of demand for electricity
A) greater than B) less than C) equal to D) not comparable to E) unrelated to
A successful local entrepreneur opens up the only Chevrolet dealership in a medium sized Texas town. Why does this not necessarily constitute a monopoly position?
What will be an ideal response?
Which of the following was an argument for using fiscal policy in situations like the Great Recession?
a. Congress can act quickly. b. The size of a recessionary gap may require the use of both fiscal and monetary policy. c. Once the federal funds rate is reduced to zero, monetary policy is less effective. d. all of the above