Along the elastic range of a demand curve, a price change causes:
A. a change in total revenue in the opposite direction.
B. a change in total revenue in the same direction.
C. no change in total revenue.
D. an unpredictable change in the total revenue.
Answer: A
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The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 3.2 percent B) 1.8 percent C) 4.6 percent D) -3.2 percent E) -1.8 percent
If your wages are indexed so that they automatically adjust for inflation, in a period of continued high inflation, the cost of the goods and services you buy ____ and your nominal income ____
a. decreases, decreases b. increases, increases c. decreases, remains the same d. increases, remains the same
Supporters of consumer-driven health care assert that:
a. competitive markets are the most efficient way to allocate limited health care resources b. govenment agencies staffed by consumers should determine health care prices c. both of the above d. neither of the above
When budget deficits take place in a high-employment economy, the effect is an increase in capital stock
a. True b. False Indicate whether the statement is true or false