In the long run, if housing prices are higher in San Diego, California, versus Nashville, Tennessee, then
a. individuals would move to Nashville
b. individuals would move San Diego
c. there would be no movement across the two cities, since the difference in prices is pure compensation for difference in living conditions
d. Both B&C
c
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Which of the following events could increase the demand for labor?
a. a decrease in output price. b. a decrease in the amount of capital available for workers to use. c. an increase in the marginal productivity of workers. d. All of the above are correct.
Refer to the above figure. The market clearing price is
A. $2. B. $6. C. $8. D. $10.
Over the past 40 years, which of the following has the U.S. economy experienced?
A. secular deflation B. stable prices and so zero inflation rate C. persistent deflation D. persistent inflation
In 2012, federal expenditures on income transfers, health care, national defense, and interest on the national debt accounted for
a. less than 20 percent of federal spending. b. about 40 percent of federal spending. c. approximately 50 percent of federal spending. d. more than 85 percent of federal spending.