Whether prices or real GDP exhibit the greater response to increased aggregate demand depends on the degree of capacity utilization in the economy
a. True
b. False
Indicate whether the statement is true or false
True
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Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?
A) The shortage will cause a decrease in the equilibrium price of digital music players. B) The demand for digital music players is greater than the supply of digital music players. C) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price. D) The price of digital music players will rise in response to the shortage; as the price rises the quantity demanded will increase and the quantity supplied will decrease.
Movie theaters charge lower prices to children and senior citizens because
a. they feel sorry for them. b. they go to more movies, so they get price breaks. c. their elasticity of demand for movie tickets is higher. d. they have more time to attend movies.
Use the above table. What percentage of income is received by the poorest 20% of the population?
A. 20 percent B. 7.0 percent C. 11.1 percent D. 13.3 percent
Which of the following is included in M2?
A. commercial paper B. savings accounts C. U.S. Treasury bonds D. stocks