A 10 percent increase in the cost of restaurant meals, which are a luxury, will most likely
a. increase the purchase of meals by 10 percent.
b. increase the purchase of meals by less than 10 percent.
c. decrease the purchase of meals by more than 10 percent.
d. decrease the purchase of meals by less than 10 percent.
c
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
In the United States, the Phillips curve in the 1960s:
a. shifted upward dramatically. b. shifted upward moderately. c. remained stable. d. shifted downward moderately. e. shifted downward dramatically.
Compared to the 1910-1960 period, economic fluctuations during the past 50 years have been less severe. Most economists believe that this increased stability is primarily the result of
a. more stable monetary policy. b. the smaller budget deficits of recent decades. c. regulations that promoted more affordable housing. d. greater stability of stock prices as measured by the Dow Jones Industrial Average.
In the above figure, moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles, the opportunity cost of one ukulele is
A. 1 guitar. B. 25 ukuleles. C. 75 ukuleles. D. 25 guitars.