When the price of knit scarves decreases by 7 percent, their sales increases 7 percent. This example shows ______ demand.
a. unit elastic
b. perfectly elastic
c. unit inelastic
d. perfectly inelastic
a. unit elastic
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The Marginal Propensity to Consume (MPC) is defined as the change in
a. C over the change in DI. b. income over the change in disposable income. c. DI over the change in C. d. total income over the change in net income.
The labor force divided by the working age population equals the:
A. unemployment rate. B. participation rate. C. employment rate. D. population rate.
A consumption possibilities curve shows the combinations of two goods that can be consumed when a nation specializes in producing a particular good and trades with another nation
Indicate whether the statement is true or false
In the event of deflation, or negative inflation, then
a. real GDP is always lower than nominal GDP. b. real GDP is always lower than nominal GDP after the base year. c. real GDP is always lower than nominal GDP. d. real GDP is always higher than nominal GDP before the base year. e. None of the above