The price elasticity of today's supply curve of classrooms on campus is likely to
a. be greater than 1
b. be less than 1
c. be equal to 1
d. approach zero
e. be infinity
D
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When there are sustained increases in real GDP over time, we say that the economy is undergoing
A) a recession. B) economic growth. C) massive changes in productive capacity. D) economic stagnation.
If Cheesy Cheese agrees to sell its cheese to Fresh Pizza on the contractual condition that Fresh Pizza purchases 100 percent of the cheese needed to make its pizzas from Cheesy Cheese, this is an example of ________.
A) a horizontal contract B) a tying arrangement C) an exclusive dealing contract D) a requirements contract
If people expect prices to rise in the future, the consumption curve will shift upward
Indicate whether the statement is true or false
Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP. Keynesians might advise a policy of tax __________ to shift __________
A) increases; SRAS to the left B) increases; AD to the left C) cuts; SRAS to the right D) cuts; AD to the right