Which of the following statement is true?
a. The demand for Cheerios is less elastic than the demand for cereal
b. The demand for gas is more elastic in the short-run than in the long-run
c. The demand for puma shoes is more elastic than the demand for shoes
d. Products with many complements have a more elastic demand
c
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Which of the following statements is normative?
What will be an ideal response?
If pizzas and quesadillas are substitutes and the price of pizzas decreases, we would expect to see:
A. an increase in the quantity demanded for quesadillas. B. a decrease in the demand for quesadillas. C. an increase in the demand for quesadillas. D. a decrease in the quantity demanded for quesadillas.
Corporate profits are taxed at too low a rate.
Indicate whether the statement is true or false.