If the demand for a good is elastic, then total revenue
a. increases as price increases
b. remains constant as quantity demanded increases
c. increases as price decreases
d. decreases as quantity demanded increases
e. decreases as price decreases
C
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In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. A recessionary gap exists
A) if the long-run aggregate supply curve is LAS1. B) if the long-run aggregate supply curve is LAS2. C) if the long-run aggregate supply curve is LAS3. D) All of the above answers are correct.
Suppose there has been an increase in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) decrease; increase to its initial level B) increase; increase further C) increase; decrease to its initial value D) decrease; decrease further
Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's required reserves?
A) $25,000 B) $55,000 C) $80,000 D) $135,000
An inverse relationship will be graphed as
A. a U-shaped curve. B. a loop. C. a line that is upward sloping. D. a line that is downward sloping.