To be binding, a price floor must be set above the equilibrium price
a. True
b. False
Indicate whether the statement is true or false
True
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The possibility that unanticipated policy changes are an important source of output fluctuations is most consistent with ________
A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) institutionalist theory
What causes the aggregate demand curve to shift?
What will be an ideal response?
Research by Warburton, and more recently Miron and Zweibel on alcohol consumption during and after prohibition indicates that:
a. the demand for alcohol is fairly price inelastic. b. the demand for alcohol is fairly income inelastic. c. the demand for alcohol is fairly price elastic. d. the demand for alcohol has a price elasticity of zero.
In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The labor force participation rate in the economy is equal to: a. U/(U + E)
b. E/(U + E). c. U/(U + E + NLF). d. E/(U + E + NLF). e. (U + E)/(U + E + NLF).