A product's price elasticity of demand is equal to:
a. the percentage change in its quantity demanded divided by the percentage change in its price.
b. the percentage change in its price divided by the percentage change in its quantity demanded.
c. the average change in its quantity demanded by the average change in its price
d. the average change in its price divided by the average change in its quantity demanded.
a
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Suppose the actual budget deficit remains unchanged when the economy falls into a recession. This is an indication that
A) fiscal policy was used during the recession. B) monetary policy was not used during the recession. C) fiscal policy was not used during the recession. D) monetary policy was used during the recession.
What happened to consumer prices as measured by the CPI between 1929 and 1933?
A) rose by more than 20% B) didn't change C) declined by about 25% D) declined by about 80%
The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009, resulted in
a. rapid growth of both the money supply and nominal GDP. b. rapid growth of the money supply and a substantial increase in the rate of inflation. c. low interest rates and a sharp decline in the velocity of the money supply. d. low interest rates and a sharp increase in the velocity of the money supply.
Each of the following is a provision of the 1996 welfare reform law except that
A. lifetime welfare benefits would be limited to five years. B. each state receives a lump sum to run its own welfare and work programs. C. any adult found guilty of a felony would be removed from the welfare rolls. D. future legal immigrants are banned from welfare assistance.