Answer the next question on the basis of the following demand schedule.PriceQuantity Demanded$615243342516Which of the following is correct?
A. Although the slope of the demand curve is constant, price elasticity of demand goes from inelastic to elastic as we move from high to low price ranges.
B. Although the demand curve is convex to the origin, price elasticity of demand is constant throughout.
C. Although the slope of the demand curve is constant, price elasticity of demand goes from elastic to inelastic as we move from high to low price ranges.
D. A steep slope means demand is relatively inelastic; a flat slope means demand is relatively elastic.
Answer: C
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
An excess benefit from corrective taxation arises because the tax revenues can be spent on compensation
a. True b. False
The economy's self-correcting mechanism always tends to push the unemployment rate back toward a specific rate of unemployment called
a. the ideal rate of unemployment. b. the natural rate of unemployment. c. the full rate of unemployment. d. the mature rate of unemployment.
Which of the following shifts aggregate demand right?
a. both a decrease in the price level and the implementation of an investment tax credit b. a decrease in the price level but not the implementation of an investment tax credit c. the implementation of an investment tax credit but not a decrease in the price level d. neither a decrease in the price level nor the implementation of an investment tax credit