If there is no response in quantity demanded to a change in price, demand is
A. perfectly inelastic.
B. elastic.
C. unit-elastic.
D. perfectly elastic.
Answer: A
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Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?
A) an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds B) new federal legislation that raises the legal driving age to twenty-four in all states C) a new fee that used car dealers must pay to the government on all sales of used cars D) all of the above because each is consistent with the "law of demand"
Use the information below to explain adjustments that move the economy to a long-run equilibrium. Assume that firms and workers have adaptive expectations
The current unemployment rate = 4%. The natural rate of unemployment = 6%. Last year's inflation rate = 3%. This year's inflation rate = 4%.
The interest rate the Fed charges on loans to depository institutions is known as
A) the federal funds rate. B) the Fed loan rate. C) the discount rate. D) the interbank clearing rate.
Under the Employment Act of 1946, what action did the federal government take for the first time in U.S. history?
(a) Assuming power and responsibility for managing the world economy (b) Assuming power and responsibility for managing the U.S. economy (c) Relinquishing all influence for managing the U.S. economy to state governments (d) Relinquishing all influence for managing the U.S. economy to the private sector