If the multiplier in an economy is 5, a $20 billion increase in net exports will:
A. increase GDP by $100 billion.
B. reduce GDP by $4 billion.
C. decrease GDP by $100 billion.
D. increase GDP by $20 billion.
A. increase GDP by $100 billion.
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If the price of a good increases and the total revenue remains the same, the demand for the good is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.
Economists argue that restrictions against ticket scalping actually drive up the cost of many tickets
a. True b. False Indicate whether the statement is true or false
The absolute price elasticity of demand for a vertical demand curve
A) is infinite. B) is 1.0. C) is 0. D) depends on where one is on the demand curve.
At one time, many economists believed that
A. the government could determine the slope of the Phillips curve. B. the government could make the Phillips curve horizontal. C. the government could decide at which point on the Phillips curve the economy should be. D. the government could determine what the Phillips curve should be.