In the long run, demand-pull inflation leads to:
A. Higher unemployment and higher price level
B. Lower real wages and higher unemployment
C. Lower real output and no change in unemployment
D. Higher price level and no change in real output
D. Higher price level and no change in real output
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Assume that a 3% increase in income across the economy produces a 1% decrease in the quantity of fast food demanded. The income elasticity of demand for fast food is ________, and therefore fast food is ________
A. positive; an inferior good. B. negative; a normal good. C. positive; a normal good. D. negative; an inferior good.
If Lisa Beth needs special film for her expensive new camera, then for her these two goods are
a. substitute b. complementary c. unit elastic d. elastic e. inelastic
What is meant by the term "tax incidence"? What is the tax incidence of the personal income tax? What is the tax incidence of the corporate income tax?
What will be an ideal response?
If the economy's output and income double in 35 years, we can:
A) not say anything about the average annual rate of growth. B)conclude that its average annual rate of growth is about 2 percent. C) conclude that its average annual rate of growth is about 4 percent. D) conclude that its average annual rate of growth is about 5.5 percent.