Kiwis and strawberries are substitutes for consumers. An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of
strawberries.
A) raises; increases
B) lowers; probably changes, but more information is needed to determine if it increases or decreases
C) lowers; increases
D) probably changes, but more information is needed to determine if it rises or falls; increases
E) raises; probably changes, but more information is needed to determine if it increases or decreases
D
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Wages that are "sticky":
A. pull other prices up or down with them when they change. B. have not changed, in real terms, for decades. C. are stuck where they are and fail to adjust downwards in a recession. D. are pegged to other variables, such as product prices.
After an extended period of steady inflation at a constant rate,
a. people will anticipate inflation. b. actual unemployment will approximate the natural rate of unemployment. c. actual unemployment will be less than the natural rate of unemployment. d. both a and b are true.