The effect of a compensated price change is known as:
A. the price effect of a price change.
B. the income effect of a price change.
C. the substitution effect of a price change.
D. the replacement effect of a price change.
C. the substitution effect of a price change.
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If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A) be bowed out. B) be bowed in. C) be a straight line. D) not exist.
In a sealed-bid first price auction, if you notice that your competition is weaker, you should
a. Shade your bid more b. Shade your bid less c. Bid more aggressively d. Both B&C
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
The office of the Federal Reserve Bank of New York charged with implementing Federal Reserve open market policy actions is known as the
A. Open Market Cooperation Office. B. Trading Desk. C. Open Market Coordination Office. D. Response Desk.