Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium
A) quantity of laser eye surgery to decrease. B) quantity of laser eye surgery to increase.
C) price of technology to increase. D) quantity of technology to decrease.
B
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Which of the following is an example of rent seeking?
a. Enrique offers large donations to politicians if they promise to support his causes. b. Gennifer donates small amounts to many politicians throughout the year. c. Christa regularly writes letters to her representatives urging them to support certain policies. d. Martin makes a large donation to a special interest group whose work he admires.
Rank the components of aggregate demand by their sensitivity to changes in the real interest rate. Start with the most sensitive to the least sensitive.
What will be an ideal response?