All things equal, the price elasticity of supply
a. will be greater in the short run than in the long run.
b. will be greater in the long run than in the short run.
c. is the same for the short run and the long run.
d. approaches zero in the long run.
B
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When Okun's "misery index" is used to judge macroeconomic conditions, inflation is being considered
A) not to be a macroeconomic problem at all. B) a less serious macroeconomic problem than unemployment. C) just as serious a macroeconomic problem as unemployment. D) a more serious macroeconomic problem than unemployment.
One of reasons the government may choose to spend would be the:
A. real interest rates decrease. B. real interest rates increase. C. government expected to earn a large return on its spending. D. beliefs about what citizens may need.
Richard raises Rhode Island Red chickens. Consumers, when buying chicken in the supermarket, view all other types of chickens as perfect substitutes for the Rhode Island Red. There are no barriers to entry in the chicken industry and, as a result, there are many, many chicken producers. An economist knows that
a. if Richard raises his price, he differentiates his chickens from the others on the market b. the demand curve Richard faces is horizontal c. if Richard lowers his price, he differentiates his chickens from the others on the market d. Richard can increase brand loyalty and market share by advertising e. Richard's relevant market is not chicken
What will happen to the demand for reserves if real GDP increases?
A. It will shift outward. B. It will shift inward. C. It will remain unchanged. D. It depends on what happens to interest rates.