A change in the price of one good, such as staples, may affect the quantity demanded of another good, such as rubber bands.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Name a supply shock that has affected the U.S. economy on more than one occasion
What will be an ideal response?
Refer to the above figure. Suppose the natural rate of unemployment is 5 percent. If the government tried to reduce unemployment to 4 percent and keep it there, it must
A) raise unemployment benefits. B) accept a permanent inflation rate of 1 percent. C) generate higher and higher inflation rates or else people will adjust their behavior and the unemployment rate will return to 5 percent. D) use contractionary fiscal and expansionary monetary policy.
Which one of the following statements is TRUE?
A. Demand deposits are assets of a bank. B. A bank's assets plus its liabilities must equal zero. C. A bank's reserves can only be kept as cash in its vault. D. Assets generate income for a bank.
Which of the following is not an example of Pareto optimality?
A. The city council approves a tax increase on all residents in order to make repairs to one remote residential street. B. The Beauregard twins eagerly switch cell phone cases with each other. C. Despite complaints from members, Harmony Industries builds a sewage treatment plant next to a country club. D. Timmy tricks Jonathan into trading a genuine Brooks Robinson baseball card for a fake Pete Rose baseball card.