The old classical macroeconomic was based on an assumption of price and wage ________, and thus an economy that ________
A) flexibility, promptly self-corrected
B) flexibility, failed to self-correct promptly
C) stickiness, promptly self-corrected
D) stickiness, failed to self-correct promptly
A
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If a market system is functioning well, we can conclude that goods with
A. high opportunity costs tend to have high money costs. B. low opportunity costs tend to have high money costs. C. high opportunity costs tend to have low money costs. D. low opportunity costs tend to have zero money costs. E. high opportunity costs tend to have zero money costs.
Refer to the figure above. What is the domestic demand for pens in Lithasia, after the economy opens up to free trade?
A) 6 units B) 12 units C) 16 units D) 22 units
If the Fed buys a T-bill from a commercial bank, how will it pay for the T-bill?
a. It will give the bank new reserves. b. It will write the bank a check. c. It will transfer cash to the bank's vault. d. It will take reserves from another bank.
A sporting goods store observes that as they reduce the price of squash balls from $5 to $4, their quantity demanded rises from 200 to 220. Rounding to the nearest tenth, they correctly compute the elasticity of demand of squash balls to be:
A. 2.3. B. 5. C. 0.4. D. 0.1.