The economy is undergoing a recession that has reduced consumers' incomes. In the computer chip market, this will lead to
A) an increase in price and a decrease in quantity.
B) an increase in price and an increase in quantity.
C) a decrease in price and a decrease in quantity.
D) a decrease in price and an increase in quantity.
Answer: C
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A solution to the budget-gaming problem is
a. Remove all kinks from the compensation schedule b. Use a straight line pay for performance function c. Do not base compensation on meeting a particular budget goal d. All of the above
Equilibrium real GDP is
a. independent of the price level b. determined solely in the loanable funds market c. controlled by the Fed d. directly related to the interest rate e. the level of output at which total spending equals total output for a given price level
In the market for loanable funds, the demand curve:
A. reflects that more people will choose to save the higher is the interest rate. B. is upward sloping. C. is downward sloping. D. represents savers.
Stagflation is characterized by a(n)
What will be an ideal response?