The model of aggregate demand and aggregate supply explains the relationship between
a. the price and quantity of a particular good.
b. unemployment and output.
c. wages and employment.
d. real GDP and the price level.
d
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The use of psychological incentives to solve commitment problems would be least effective in games played:
A. once between family members. B. repeatedly between strangers. C. once between strangers. D. repeatedly between family members.
In 2008 and 2009, the quantity theory of money did a ________ job of predicting year-to-year changes in the inflation rate because ________
A) good; interest rates behaved predictably B) poor; the Fed changed the growth rate of the quantity of money too quickly C) poor; velocity of circulation plunged D) good; real GDP remained stable E) poor; the price level and the velocity of circulation did not change
If the demand for flashlights is highly inelastic, this indicates that
a. higher flashlight prices will increase the demand for flashlights. b. the price elasticity of demand for flashlights is greater than 1. c. the price elasticity of demand for flashlights equals 1. d. the quantity of flashlights purchased by consumers is not very responsive to a change in the price of flashlights.
Constraints
What will be an ideal response?