a. An increase in the price of Post Frosted Mini Wheats (a substitute for Kellogg Frosted Mini Wheats) should
shift the Demand curve for Kellogg Frosted Mini Wheats to the right.
shift the Demand curve for Post Frosted Mini Wheats to the left.
cause the Demand curve for Pepsi to shift to the right.
cause no shift in the Demand curve for Kellogg Frosted Mini Wheats.
cause the Demand curve for Kellogg Frosted Mini Wheats to shift to the left.
b. Assuming Demand is downward sloping and Supply is upward sloping (as we usually do), what happens to equilibrium price and quantity of a good when Supply decreases?
P decreases; Q decreases
P increases; Q decreases
P decreases; Q increases
P and Q should not change
P increases; Q increases
c. Suppose frictional unemployment is typically UF = 3.0% and structural unemployment is typically US = 2.0%, then what is the "natural" rate of unemployment, UN?
2.5%
1.0%
6.0%
5.0%
none of the other options
a. An increase in the price of Post Frosted Mini Wheats (a substitute for Kellogg Frosted Mini Wheats) should
shift the Demand curve for Kellogg Frosted Mini Wheats to the right.
shift the Demand curve for Post Frosted Mini Wheats to the left.
cause the Demand curve for Pepsi to shift to the right.
cause no shift in the Demand curve for Kellogg Frosted Mini Wheats.
cause the Demand curve for Kellogg Frosted Mini Wheats to shift to the left.
b. Assuming Demand is downward sloping and Supply is upward sloping (as we usually do), what happens to equilibrium price and quantity of a good when Supply decreases?
| P decreases; Q decreases |
| P increases; Q decreases |
| P decreases; Q increases |
| P and Q should not change |
| P increases; Q increases |
c. Suppose frictional unemployment is typically UF = 3.0% and structural unemployment is typically US = 2.0%, then what is the "natural" rate of unemployment, UN?
| 2.5% |
| 1.0% |
| 6.0% |
| 5.0% |
| none of the other options |
Related textbook solutions
Related questions
1. If government tax policy requires Jane to pay $28,000 in taxes on an annual income of $200,000 and Mary to pay $10,000 in tax on the annual income of $100,000, then the tax policy is:
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regressive. |
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progressive. |
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proportional. |
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optional. |
2. When increasing oil prices cause aggregate supply to shift to the left, then:
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unemployment and inflation decrease. |
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unemployment decreases and inflation increases. |
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unemployment and inflation increase. |
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unemployment increases and inflation decreases. |
3. What do goods like gasoline, tobacco, and alcohol typically share in common?
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A progressive tax is imposed on each of them. |
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A regressive tax is imposed on each of them. |
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They are all subject to government excise taxes. |
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They are all subject to government fiscal taxes. |
4. When inflation begins to climb to unacceptable levels in the economy, the government should:
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use contractionary fiscal policy to shift aggregate demand to the right. |
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use contractionary fiscal policy to shift aggregate demand to the left. |
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use expansionary fiscal policy to shift aggregate demand to the right. |
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use expansionary fiscal policy to shift aggregate demand to the left. |
