Refer to the above figure. Demand is
A) perfectly elastic.
B) unitary elastic.
C) perfectly inelastic.
D) undetermined without more information.
C
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Cyclical unemployment refers to unemployment resulting from:
a. a mismatch of skills. b. being in the wrong geographical location. c. the time and monetary cost of finding the best job. d. a recession.
Suppose you get a tax refund of $4,000 and instead of spending it on items that had been on your wish list for two years, you put it all in your checking account at the First National Bank of Urbana. And if the legal reserve requirement was 20 percent, your cash deposit of $4,000 in the Urbana bank makes it possible for the banking system to potentially create (including your $4,000 . a total
amount of money of a. $800 b. $3,200 c. $4,000 d. $16,000 e. $20,000
If changes in monetary policy are going to help stabilize the economy, they must
a. be expansionary. b. be restrictive. c. reduce the real rate of interest. d. be properly timed. e. stimulate aggregate demand.
The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on:
A. if those who are affected receive their true value of the externality. B. where the government gets the money to pay for the subsidy. C. how the subsidy is distributed among those affected by the externality. D. None of these statements is true.