Which of the following is NOT characteristic of a good with elastic demand?
A. Buyers are relatively sensitive to price changes.
B. The absolute price elasticity of demand is less than 1.
C. The percentage change in quantity demanded is greater than the percentage change in price.
D. Total revenue decreases if price is increased.
Answer: B
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Russia chose a slow approach to creating a private economy and China chose a fast approach
Indicate whether the statement is true or false
The focus of the short-run macro model is on the role of
a. spending in explaining economic fluctuations b. labor in explaining economic fluctuations c. financial markets in explaining economic fluctuations d. output in explaining economic fluctuations e. resources in explaining economic fluctuations.
A change in the price of a good will shift the demand for labor producing that good
Indicate whether the statement is true or false
In response to the financial crisis of 2007-2009, the Federal Reserve
A. raised the fed funds rate from 2.0 percent to 5.25 percent. B. raised the discount rate from 2.0 percent to 5.25 percent. C. cut the fed funds rate from 5.25 percent to 2.0 percent. D. cut the discount rate from 5.25 percent to 2.0 percent.