Refer to the diagram. In the P 1 P 2 price range, demand is:
A. of unit elasticity.
B. relatively inelastic.
C. relatively elastic.
D. perfectly elastic.
C. relatively elastic.
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Comparing State economies to that of the US as a whole shows that
a) about half the States are in recession at any point in time b) when the US enters a recession, about 20% of the States experience economic expansion, and vice versa c) there is very little correlation between the national and regional economies d) there is a highly positive correlation between the national economy and most State economies e) the 12 Federal Reserve districts experience business cycles independently of each other
Demand is inelastic when
A. the percentage change in quantity demanded is greater than percentage change in price. B. the percentage change in price is greater than percentage change in quantity. C. the percentage change in price is equal to percentage change in quantity.
If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes:
A. the output effect. B. the foreign purchases effect. C. the real-balances effect. D. the shift-of-spending effect.