The only policy lever that is effective against unemployment when the AS curve is vertical is
A. Fiscal policy.
B. Monetary policy.
C. Laissez faire policy.
D. Supply-side policy.
Answer: D
Economics
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If a 1 percent increase in price leads to a .7 percent increase in quantity supplied in the short run, the short-run supply curve is
a. elastic. b. inelastic. c. unit elastic. d. perfectly inelastic.
Economics
The price of wheat used to make cereal has increased. At the same time, the price of milk (a compliment good) has decreased. Given these two events, what do you expect to happen to the equilibrium price and quantity of cereal?
What will be an ideal response?
Economics