If the prices of energy products rise sharply, consumers will most likely
a. sharply reduce their consumption of these products in both the short run and the long run.
b. reduce their consumption of these products slightly in the short run and more sharply in the long run.
c. reduce their consumption of these products sharply in the short run, but in the long run consumption will fall by only a small amount.
d. increase their consumption of these products slightly in the short run and more sharply in the long run.
B
You might also like to view...
Refer to Figure 18.2. In autarky, the maximum amount of spears that Macadamia can produce is
A) 40. B) 100. C) 120. D) 160.
Rapid economic growth, stable prices and __________ are the three important macroeconomic goals about which most economists agree
a. an unemployment rate of zero b. zero inflation c. full employment d. a high exchange rate e. low interest rates