The economy is in short-run equilibrium
A) at any point on the IS curve.
B) only at the natural level of GDP.
C) at any point on the LM curve.
D) only at a point that is on both the IS and LM curves.
D
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If the percentage change in price is less than the percentage change in quantity demanded, the price elasticity coefficient is greater than 1.
Answer the following statement true (T) or false (F)
Suppose that the percentage change in supply is 20%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand?
A. 0 B. 1 C. 2 D. 3
According to classical economists, market-driven economies
A. Are inherently unstable. B. Require government intervention. C. Are always in long-run equilibrium. D. Are typically self-adjusting.
At $7.25 per hour, the 2016 inflation adjusted minimum wage was
A. statutorily constant. B. at an all-time high. C. nearing a 50-year low. D. near its historical average.