Imports are a leakage in the sense that
a. the international financial system is unstable.
b. consumers buy foreign output of goods and services.
c. foreigners earn less than U.S. workers.
d. a trade deficit increases aggregate demand.
b
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If the price of a good rises by 10% and the quantity purchased falls by 15%, then demand for the good is ________ and total spending on the good will ________
A) elastic; increase B) inelastic; increase C) elastic; decrease D) me and so inelastic; decrease
If a good is inferior, then the income elasticity of demand for that good is
a. positive and greater than 1 b. negative c. positive and less than 1 d. 0 e. perfectly elastic
A real estate salesperson sells a house in 1999 that was built in 1990. How does this transaction get counted in the GDP statistics?
What will be an ideal response?
The number of efficient plants compatible with domestic consumption of the refrigerator industry in Sweden is 0.7. Which of the following implications is(are) correct?
A. In the absence of imports, the refrigerator industry in Sweden is monopolistic. B. The refrigerator industry in Sweden is monopolistically competitive. C. The refrigerator industry in Sweden is perfectly competitive. D. None of the answers is correct.