When the price of gasoline increases substantially, many consumers will
a. turn to fuel saving alternatives like hybrid vehicles.
b. drive less.
c. take public transportation.
d. all of the above are true.
D
You might also like to view...
The duration of unemployment tends to rise when
A) business activity goes into a downturn. B) business activity starts back up after a long period of decline. C) people leave their jobs rather than lose their jobs. D) the number of entrants exceeds the number of reentrants.
The increase in government spending on unemployment insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of
A) discretionary monetary policy. B) automatic stabilizers. C) automatic monetary policy. D) discretionary fiscal policy.
Given the values in the table above, the IS curve is ________
A) Y = 34.6 - 2r B) Y = 8.65 - 2r C) Y = 22.6 - 2r D) Y = 8.33 - 0.67r E) none of the above
One characteristic of built-in or automatic stabilizers is that
A) they require no new legislative action by Congress to have an effect. B) they automatically produce surpluses during recessions and deficits during inflation. C) they have no effect on the distribution of income. D) they reduce the size of the public debt during times of recession.