If firms have to change their production techniques in order to change the quantities they supply, their response to a price change will be less in a period of a year as compared to what they can do in a month
a. True
b. False
Indicate whether the statement is true or false
False
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According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is
A) $9.9 trillion. B) $8 trillion. C) $10.1 trillion. D) $9.8 trillion. E) $10.2 trillion.
If a 5 percent decrease in the price of a good produces a 5 percent increase in the quantity demanded, the price elasticity of demand is:
A. perfectly elastic. B. unitary elastic. C. elastic. D. inelastic.
According to the quantity theory of money, nominal GDP will double if the money supply is
A. reduced threefold. B. reduced by one-half. C. tripled. D. doubled.
Why does economics fit well as a liberal arts education?
What will be an ideal response?