The elasticity of demand is determined partly by whether the good is a necessity or a luxury.
Answer the following statement true (T) or false (F)
True
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Which of the following would not be hurt by unanticipated inflation?
A. Those living on fixed nominal incomes B. Those who find inflation rising more rapidly than their nominal incomes C. Those who have money savings D. Those who became debtors when inflation was lower
Total cost refers to the market value of all resources used in producing a good or service.
Answer the following statement true (T) or false (F)
If a nation with a low level of GDP per capita converges to a richer nation, the poor nation
A) enters into a free trade agreement with the richer nation. B) experiences low growth rates. C) experiences a rate of high growth such that its GDP per capita increases to that of the richer nation. D) experiences a rate of low growth such that its GDP per capita increases to that of the richer nation.
If government increases taxes by the same amount it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease in consumption spending by households
Indicate whether the statement is true or false