A change in the price of a good has no effect on the supply schedule
a. True
b. False
Indicate whether the statement is true or false
True
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Unemployment insurance:
A. has a set minimum in the US. B. is typically 32 weeks in the US, except for times of unusually high unemployment. C. varies widely across countries. D. All of these are true.
If an increase in government spending causes an increase in government borrowing, this could induce
A. an increase in interest rates, which would cause private domestic investment to rise. B. an increase in interest rates but no effect on private domestic investment. C. an increase in interest rates, which would cause private domestic investment to fall. D. a decrease in interest rates, which would cause private domestic investment to rise.
Chronic excess demand will be a bigger problem in markets with price ceilings for goods where the demand is very ____________ and the supply is very _______________.
a. elastic; elastic b. inelastic; inelastic c. elastic; inelastic d. inelastic; elastic e. steep; flat
When demand for money is unstable,
A) a constant interest-rate policy will be superior to a policy of constant money-supply growth. B) constant money-supply growth will be superior to a countercyclical monetary policy. C) procyclical monetary policy would be needed to keep the interest rate constant. D) Both A and C are correct.