At a price of $8 per dozen, Chuy sells 40 dozen homemade tamales per week. When he raised his price to $12 per dozen, he still sold 40 dozen per week. Based on this information, the demand for his tamales is
A) unit elastic. B) perfectly elastic. C) perfectly inelastic. D) inelastic.
C
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A bank has checkable deposits of $1,000,000, loans of $600,000, and government securities of $400,000. If the required reserve ratio is 5 percent, the amount of required reserves is
A) $100,000. B) $30,000. C) $50,000. D) $80,000. E) $20,000.
The time-inconsistency problem in monetary policy can occur when the central bank conducts policy
A) using a nominal anchor. B) using a strict and inflexible rule. C) on a discretionary, day-by-day basis. D) using a flexible, discretionary rule.
Suppose a firm uses both labor (L) and capital (K) and its long-run production function is given by the expression Q = F(L,K) = 2L × ?(L + K). The firm currently uses 10 units of capital. Complete the following table:
What will be an ideal response?
The natural rate of unemployment occurs if there is no:
A. unemployment. B. frictional unemployment. C. structural unemployment. D. cyclical unemployment.