The phases of the business cycle are prosperity, downturn, depression, and recession
Indicate whether the statement is true or false
F
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Consumers in a country buy only two goods, sneakers and manicures. The prices and quantities purchased by urban households are in the table above. The reference base year is 2011. The inflation rate between 2011 and 2012 is
A) $15. B) 15.0 percent. C) $10. D) 10.3 percent. E) 9.0 percent.
The Secretary of the Treasury
A) serves as Chairman of the Board of Governors. B) serves as a member of the Board of Governors. C) serves as a member of the Federal Open Market Committee. D) does not serve on the Board of Governors.
If food is measured on the horizontal axis of a budget line diagram, and clothing is measured on the vertical axis, the slope of the budget line
a. may be positive if the price of clothing is high enough b. may be positive if the price of food is high enough c. may be positive if income is large enough d. equals the maximum consumption of food divided by the maximum consumption of clothing times -1 e. equals the maximum consumption of clothing divided by the maximum consumption of food times -1
Suppose that a large tornado destroys the fleet of fire trucks for the city of Omaha, Nebraska. What happens to the earnings of firefighters in Omaha?
a. The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall. b. The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall. c. The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise. d. The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise.