Because the price elasticity of supply for jumbo jets is 0.35, the supply of jumbo jets is
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly elastic.
E) perfectly inelastic.
C
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If purchasing power parity tells us that if the exchange rate is a pound for a dollar, then price of a haircut in London should cost the same as a haircut in New York
Indicate whether the statement is true or false
The short-run Phillips Curve is ________, and the long-run Phillips Curve is ________.
A. upward sloping; vertical B. downward sloping; horizontal C. downward sloping; vertical D. upward sloping; horizontal
When households' marginal propensity to consume (MPC) increases, the size of the spending multiplier:
a. also increases. b. decreases. c. remains unchanged. d. reacts unpredictably.
If the U.S. dollar depreciates, it means that
a. the value of the U.S. dollar has increased. b. the value of foreign exchange has decreased. c. fewer U.S. dollars are required to purchase foreign exchange. d. more U.S. dollars are required to purchase foreign exchange. e. exports will immediately fall.