There is a general overall ________ relationship between the price level and ________.
A. negative; aggregate expenditures
B. negative; nominal expenditures from the government
C. positive; aggregate expenditures from the government
D. positive; nominal expenditures from households
Answer: A
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If the economy is producing at point D, the opportunity cost of shifting resources from consumer goods to gain 6 capital goods is _______ consumer goods.
If the price elasticity of supply for a good is 0.75, then
A) the percentage change in the quantity supplied is less than the percentage change in price. B) the supply is elastic. C) an increase in the price boosts the quantity supplied by a larger percentage. D) the supply is inelastic so the demand must also be inelastic. E) None of the above answers is correct.
In the most basic model presented in the text, when aggregate expenditures cross the 45-degree line,
a. saving equals intended investment b. saving is greater than intended investment c. saving is less than intended investment d. saving equals consumption e. saving equals inventories
Dynamic pricing used by companies such as Uber:
A. allows market prices to adjust in real time to changes in supply and demand. B. creates market prices that are consistently lower than those preset by firms or by law. C. has been declared illegal because it harms consumers. D. often results in shortages of desired products.