Which of the following expressions represents a cross-price elasticity of demand?
a. percentage change in quantity demanded of bread divided by percentage change in quantity supplied of bread
b. percentage change in quantity demanded of bread divided by percentage change in price of butter
c. percentage change in price of bread divided by percentage change in quantity demanded of bread
d. percentage change in quantity demanded of bread divided by percentage change in income
b
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
The price for the shutdown point is ________
A) $5.14 B) between $3.01 and $5.13 C) $3.00 D) between $0 and $2.99 E) greater than $5.15
The money supply would tend to fall if the Fed
A) sells bonds. B) buys bonds. C) lowers the discount rate. D) lowers reserve requirements.
In the macroeconomic short run
A) actual real GDP may be less than or more than potential GDP. B) the unemployment rate is zero. C) by definition, the economy is always moving away from full employment. D) actual real GDP always equals potential GDP.