The ratio of the percentage change in quantity demanded to the percentage change in price is known as the:
A. demand-side shift factor.
B. income elasticity of demand.
C. price elasticity of demand.
D. cross elasticity of demand.
Answer: C
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Suppose the AD and SAS curves shift upward by the same amount. Real GDP would ________ while the price level ________
A) remain unchanged, rises B) remain unchanged, remains unchanged C) remain unchanged, falls D) rise, remain unchanged E) fall, rises
In 2003, the federal budget deficit was about _____ percent of gross domestic product
a. three b. zero c. seven d. ten
Many modern economists
a. combine Keynesian short run and neoclassical long-run theories to understand the economy. b. use only Keynesian theories to understand the economy. c. use only neoclassical theories to understand the economy. d. use Rational and Adaptive Expectation theories to understand the economy.
Demand is more price-elastic
A. If the product is a small part of the consumer's budget. B. In the long run. C. If the product is a necessity. D. If the product has very few substitutes.