The Law of demand states that if the price of Mars bars decreases, then holding everything else constant, the

Select one:

Quantity of Mars bars demanded will decrease

Quantity of Mars bars supplied will decrease

Quantity of Mars bars supplied will increase

Quantity of Mars bars demanded will increase

Which of the following would most likelyNOTbe a non-price determinant of demand for Mars bars?

Select one:

A scientific finding showing that "a Mars bar a day keeps the doctor away"

An advertising campaign showing a famous Hollywood actor eating Mars bars

A decrease in the price of Snickers bars

An increase in the price of sugar

If a 20% increase in the price of Mars bars leads to a 10% increase in supply, then the price elasticity of supply for Mars bars is

Select one:

0.5 and inelastic

2.0 and inelastic

0.5 and elastic

2.0 and elastic

In the aggregate demand/aggregate supply (AD/AS) model, if actual real GDP is $22.4 trillion and potential GDP is $20.1 trillion, then the

Select one:

Inflationary gap is equal to $2.3 trillion

Recessionary gap is equal to $2.3 trillion

Recessionary gap is equal to $20.1 trillion

Inflationary gap is equal to $22.4 trillion

If a worker is unemployed because he/she does not have the necessary skills to gain employment, then he/she is most likely

Select one:

Cyclically unemployed

Seasonally unemployed

Structurally unemployed

Frictionally unemployed

Which of the following statements is correct?

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In a boom, an economy will have high unemployment and low inflation

In a trough, an economy will have low unemployment and low inflation

In a boom, an economy will have low unemployment and high inflation

In a trough, an economy will have low unemployment and high inflation

If the level of GDP growth in the Australian economy was too high, then the Reserve Bank of Australia would most likely

Select one:

Implement expansionary monetary policy and raise interest rates

Implement contractionary monetary policy and raise interest rates

Implement contractionary monetary policy and lower interest rates

Implement expansionary monetary policy and lower interest rates