Wealthy people are more likely than poor people to use airplanes rather than busses for interurban travel because
A) their demand for transportation is more elastic.
B) their demand for transportation is more inelastic.
C) they can better afford to use a higher-cost mode of transportation.
D) they are more likely to ignore the relative costs of busses and airplanes.
E) traveling by airplane usually costs them less than traveling by bus.
E
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An economy that does not trade with the rest of the world is known as a(n) ________ economy
A) command B) closed C) open D) communist
Suppose that the economy is in long-run equilibrium and the government decided to engage in unexpected contractionary policy by decreasing the money supply
If we assume rational expectations, which of the following statements is correct about the effect of contractionary policy in the long run? A) The unemployment rate will decrease, real GDP will decrease and the price level will decrease. B) The unemployment rate will increase, real GDP will increase and the price level will increase. C) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will decrease. D) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will increase.