Which of the following contributed to the strong auto sales and soaring housing prices during 2002-2004?
a. the Fed's high-interest rate policy during the period
b. the tightening of loan standards by commercial lenders
c. the increasing popularity of fixed-rate, long-term loans to lock in low interest rates
d. the Fed's low-interest rate policy during the period
D
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Suppose that the economy is in long-run equilibrium and the government decided to engage in unexpected contractionary policy by decreasing the money supply
If we assume rational expectations, which of the following statements is correct about the effect of contractionary policy in the long run? A) The unemployment rate will decrease, real GDP will decrease and the price level will decrease. B) The unemployment rate will increase, real GDP will increase and the price level will increase. C) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will decrease. D) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will increase.
Which of the following is an example of a durable good?
a. food prepared at home b. food eaten at a restaurant c. high-fashion clothing d. binoculars e. motor oil
Identify the most likely impact of a decrease in the wealth of consumers in an economy, other things remaining constant
a. A leftward shift of the aggregate supply curve b. A leftward shift of the aggregate demand curve c. An upward movement along the aggregate demand curve d. A downward movement along the aggregate demand curve e. A steeper aggregate supply curve
Assume that when a lamp manufacturer decreases its price its total revenue does not change. What do we know?
A. Demand is price inelastic. B. Demand is price elastic. C. Demand is unit elastic. D. Demand is perfectly price elastic.