According to a survey by the U.S. Bureau of Labor Statistics, which of the following statements about annual U.S. household consumer expenditures is false?
A) The income elasticity of demand for entertainment is positive.
B) The income elasticity of demand for owner-occupied housing is positive.
C) The income elasticity of demand for rental housing is positive.
D) The income elasticity of demand for health care is positive.
E) Average family expenditures increase with income.
C
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Suppose that an increase in oil prices causes the supply curve of gasoline to shift. Using a graph, illustrate the resulting changes in equilibrium price and quantity in both the short run and the long run.
What will be an ideal response?
If the euro becomes an international reserve currency, the EU may enjoy:
A. interest-free loans that finance trade deficits. B. high-interest loans that promote trade surpluses. C. interest-free loans that promote trade surpluses. D. high-interest loans that finance trade deficits.
When gross private domestic investment exceeds depreciation, it can be concluded that:
A. Net investment is positive B. Net investment is negative C. The economy is exporting more than it imports D. The economy is importing more than it exports
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower