Along the long-run aggregate supply curve, the level of RGDP supplied ____ with increases in the price level
a. does not change
b. increases
c. decreases slightly
d. decreases dramatically
a
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If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the price elasticity of demand equals
A) 0.5. B) 1.0. C) 2.0. D) 10.0.
Refer to Figure 28-2. At which point is the unemployment rate equal to the natural rate of unemployment?
A) A B) B C) C D) There is insufficient information on the graph to answer this question.
The Fed attempts to affect the level of borrowed reserves by
A) changing the discount rate. B) changing legal reserve requirements. C) open market sales. D) open market purchases.
Refer to the data provided in Table 16.1 below to answer the following question(s).Table 16.1 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.1Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$4$41$8$82 610212203 9193163641332420565185052480Refer to Table 16.1. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits, how many permits
will be traded between the two firms? A. A will buy one permit from B. B. B will buy one permit from A. C. A will buy two permits from B. D. B will buy two permits from A.