Generally, expenses on a truck are a large part of a consumer's budget, so the demand for trucks is more likely to be
a. elastic
b. inelastic
c. unit elastic
d. perfectly elastic
Answer: a. elastic
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If the Fed wishes to increase nominal interest rates, it must engage in an open market ________ of bonds that ________ the money supply.
A. sale; does not change B. sale; increases C. sale; decreases D. purchase; increases
Explain who gains and who loses from an import quota and why the losses exceed the gains
What will be an ideal response?
The labor supply curve shifts when
a. employers need to hire more people. b. employers develop new technology. c. workers change the number of hours that they want to work at any given wage. d. workers become more productive.
What changes must occur for the potential total output of the economy to grow?
Please provide the best answer for the statement.