The mid-point method of calculating price elasticity of demand:
A. measures the percentage changes relative to a point midway between two points on a demand curve.
B. measures the absolute change relative to a point midway between two points on a demand curve.
C. measures the percentage change relative to a point midway between demand and supply.
D. None of these is true.
A. measures the percentage changes relative to a point midway between two points on a demand curve.
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
If the firm is incurring losses in the short run, then which of the following is true?
A. P < ATC B. P > ATC C. P > MC D. MC > ATC
When Churchill County residents voted whether to continue allowing two brothels to operate, the government was acting as:
A. public goods supplier. B. actor. C. big spender. D. referee.
Which of the following would be an example of passive policymaking?
A. establishing a system of automatic tax stabilizers B. government spending decreases intended to decrease real Gross Domestic Product (GDP) C. marginal rate tax cuts intended to increase real Gross Domestic Product (GDP) D. raising the money supply when the unemployment rate increases.