If airfares to Europe were to increase, other things equal, an economist would predict that:
a. most people will not change their travel and vacation plans
b. more individuals will choose to fly to Europe because now it is a more valuable experience.
c. some individuals will substitute toward other travel destinations.
d. airlines will make significantly greater profits.
c
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You are an economic advisor to the president. You are asked to recommend a policy to promote long-term economic growth in the economy. Which of the following policies would you choose?
A) a reduction in sales taxes B) a reduction in taxes on luxury yachts C) an investment tax credit D) all of the above
As people come to expect higher inflation, the long-run Phillips curve shifts leftward
a. True b. False Indicate whether the statement is true or false
The labor force participation rate of women in the United States has been
a. increasing for several decades and this has strongly affected GDP. b. decreasing for the past several decades after increasing dramatically in the early 1900s. c. approximately constant during the last three decades. d. decreasing since the early 1900s.
At high levels of interest, borrowers will borrow ____ and suppliers will supply ____.
A. more; less B. less; more C. less; less D. more; more