If the percentage change in the price of a good is less than the resulting percentage change in the quantity demanded of that good, then the demand for that good is:
A. inelastic.
B. elastic.
C. perfectly inelastic.
D. unit elastic.
Answer: B
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People pursue ________ projects in the market and ________ projects in government
A) their own; their own B) their own; others' C) private; public D) individualistic; socialistic
Explain why the tax multiplier is different from the government purchases multiplier, in both sign and relative magnitude
What will be an ideal response?
A nominal anchor promotes price stability by
A) outlawing inflation. B) stabilizing interest rates. C) keeping inflation expectations low. D) keeping economic growth low.
Politicians often argue that a country's standard of living is reduced when it allows imports into the country. Offer an economically sound counter-argument
What will be an ideal response?