If the supply of a commodity is inelastic, what will be the effect of a fall in demand?
If the supply of a commodity is inelastic, the quantity supplied will remain constant irrespective of price level changes. A decrease in demand will lower the market price of the commodity.
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Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that
A. reinforce changes in GDP. B. produce a dynamically-adjusted budget. C. produce a standardized budget. D. help offset changes in GDP.
A ________ is an extensive -form representation of a game
A) payoff matrix B) game tree C) Nash equilibrium D) pure strategy
Distinguish between the short run and the long run
What will be an ideal response?
Research by Reinhart and Rogoff indicate that most of the increase in national debt as a result of a financial crisis is due to
A) government bail outs of financial institutions. B) increase spending on social welfare programs. C) government stimulus programs. D) sharp declines in tax revenues.