When the Fed raises the federal funds rate, the consumption expenditure ________ and investment ________
A) increases; increases
B) decreases; decreases
C) does not change; does not change
D) does not change; decreases
E) increases; decreases
B
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The available data strongly suggest that, as the "needs" argument would suggest, the demand for health care is virtually perfectly inelastic
Indicate whether the statement is true or false
The four main components of the current account are:
a. services, financial assets, unilateral transfers, and debits. b. net exports, unilateral transfers, services, and domestic bank deposits abroad. c. government asset holdings abroad, foreign official assets, private bank deposits abroad, and merchandise. d. unilateral transfers, merchandise, services, and investment income. e. capital exports, services, merchandise, and royalties.
Which of the following would cause prices and real GDP to rise in the short run?
a. short-run aggregate supply shifts right b. short-run aggregate supply shifts left c. aggregate demand shifts right d. aggregate demand shifts left
Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded decreased by 10 percent. Given a fixed labor demand curve, we can conclude that:
A. the labor demand curve is upsloping. B. labor demand is elastic. C. labor demand is unit-elastic. D. the coefficient of elasticity of labor demand is less than 1.