A recession can manifest itself with ________
A) a decrease in consumer spending
B) a decrease in industrial production
C) a lengthy period of falling GDP
D) all of the above
E) none of the above
D
You might also like to view...
If Japanese producers sell computer chips at a higher price in the United States than in Japan, and if there is no cost difference in producing or transporting the chips, the Japanese producers would be practicing
A) cartel pricing. B) price discrimination. C) simple monopoly behavior. D) price sampling.
If an individual buys only two goods and these must be used in a fixed relationship with one another (e.g., coffee and cream for a coffee drinker who never varies the amount of cream used in each cup), then:
a. there is no substitution effect from a change in the price of coffee. b. there is no income effect from a change in the price of coffee. c. Giffen's Paradox must occur if both coffee and cream are inferior goods. d. an increase in income will not affect cream purchases.
Which of the following scenarios would make monetary policy the most difficult to address?
A) A worldwide spike in oil prices resulting in higher production costs. B) A rise in unemployment that causes consumers to spend less. C) A reduction in business confidence that leads to a reduction in investments D) A booming housing market that causes inflation to rise.
A unit tax of $1 will always
A. leave the supply curve unchanged. B. shift the supply curve upward by less than $1. C. shift the supply curve upward by more than $1. D. shift the supply curve up by exactly $1.