In the above figure, what are the long-run equilibrium price level and real GDP?
A. 120 and $12 trillion
B. 130 and $11.5 trillion
C. 120 and $11.5 trillion
D. 130 and $12 trillion
Answer: D
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A justification for general grants is _____
a. the equalization of revenues between government units with different income levels b. higher level governments might have a greater ability to raise revenue c. progressive taxation cannot be done on the local level d. a and b
Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between Y and Z?
A) -1.7273 B) -1.1176 C) -0.8947 D) +1.7273
According to the principle of monetary neutrality, a decrease in the money supply will not change
a. nominal GDP. b. the price level. c. unemployment. d. All of the above are correct.
Suppose quantity demanded is 2,000 when price is $10 and 3,000 when price is $5. If a monopolist who was initially charging a price of $10 discovers a way to price-discriminate, it will be able to increase revenue from $20,000 to:
A. $25,000 by charging consumers with less elastic demands only $5 and keeping the price for consumers with more elastic demands at $10. B. $35,000 by charging consumers with less elastic demands only $5 and keeping the price for consumers with more elastic demands at $10. C. $35,000 by charging consumers with more elastic demands only $5 and keeping the price for consumers with less elastic demands at $10. D. $25,000 by charging consumers with more elastic demands only $5 and keeping the price for consumers with less elastic demands at $10.