A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Cola is
A) 50.
B) 10.
C) 5.
D) 0.20.
C
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The long-run adjustment to a negative supply shock results in
A) the price level rising. B) the short-run aggregate supply curve shifting to the right. C) workers being willing to accept higher wages. D) unemployment rising.
If the utilization rates of capital and labor are procyclical, then
A) output will rise in recessions and decline in expansions. B) measured productivity will be constant. C) the Solow residual will be procyclical. D) prices will be countercyclical.
A country has a comparative advantage in the production of DVD players if it can produce DVD players at a lower opportunity cost than others
a. True b. False Indicate whether the statement is true or false
The price of one country's currency in terms of another's is called
a. the interest rate. b. the inflationary premium. c. the discount rate. d. the exchange rate.