Demand is more elastic
a. in the short run than in the long run
b. for necessities than for luxuries
c. for food than for hamburgers
d. for goods with many substitutes than for goods with only a few
e. for broadly defined goods than for narrowly defined ones
D
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Suppose there is a bank panic. Which of the following would not be a consequence of this bank panic?
A) Bank total reserves would decrease. B) Bank checking account balances would decrease. C) Required reserves would increase. D) The economy would likely enter into a recession. E) Individual banks would have to shrink the value of loans they made.
Refer to the above figure. If a price floor of $3 was set
A. there would be a shortage of 20 units. B. there would be a shortage of 40 units. C. the quantity sold would be 80 units. D. there would be a surplus of 40 units.
During recessions, the number of discouraged workers ________ and this ________ the unemployment rate.
A. decreases; increases B. increases; increases C. increases; reduces D. falls; reduces
A hypothesis that assumes that people combine the effects of past policy changes on economic events and their own judgment about future effects of current and future policy changes is known as
A) active expectations. B) modern expectations. C) rational expectations. D) adaptive expectations.