Internal causes of an economy's business cycles include
a. housing demand
b. war
c. extreme weather
d. innovation
e. multiplier and accelerator interactions
D
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A change in ________ creates a movement along the aggregate demand curve but does not shift the aggregate demand curve
A) tax rates B) the price level C) fiscal policy D) None of the above because they all shift the aggregate demand curve.
Why is the price elasticity of demand a relative measure? That is, why is elasticity measured in percentage terms rather than in absolute terms?
A) So the coefficient of elasticity will not be dependent on the physical units of the good. B) Because absolute measures do not account for the direction of the change in quantity. C) So that the coefficient of elasticity will not be negative. D) Because the absolute price or quantity demanded of a product is irrelevant to the elasticity measure.
Refer to the table below. When the consumer purchases the utility-maximizing combination of product X and product Y, total utility will be:
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4 and the price of product Y is $2. The income of the consumer is $20.
A. 72
B. 84
C. 136
D. 156
Price elasticity of demand measures the responsiveness of quantity demanded in a market to a change in price
a. True b. False Indicate whether the statement is true or false