The CPI is used
a. to estimate from estimated to actual values
b. to translate from real to nominal values
c. to translate from nominal to real values
d. as a policy target
e. c and d
D
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A coffee shop sells a small cup of coffee at $3, while a large cup, which is twice as big, at $5. This is an example of
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) actual cost differences.
An individual with a Ph.D. in physics who can find employment only in a pizza parlor would be considered: a. discouraged
b. underemployed. c. overemployed. d. voluntarily unemployed. e. long-term unemployed.
Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run. If an increase in the demand for cheese causes the price of cheese to increase by 15%, then the quantity supplied of cheese will increase by
a. 0.4% in the short run and 4.6% in the long run. b. 1.7% in the short run and 0.7% in the long run. c. 9% in the short run and 21% in the long run. d. 25% in the short run and 10.7% in the long run.
Which of the following is an advantage of automatic stabilizers?
A) The lag for automatic stabilizers is relatively long. B) It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy. C) There is no administrative cost to implementing automatic stabilizers. D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.