If the demand for a good is perfectly inelastic, then:
a. the value of price elasticity of demand of the good is equal to 1.
b. the value of price elasticity of demand of the good is equal to -1.
c. the demand curve of the good is nonexistent.
d. consumers are very responsive to a change in the price of the good.
e. quantity demanded does not change when price of the good changes.
e
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Disinflation refers to
A) a rapid increase in the price level. B) a decrease in the price level. C) a reduction in the rate of inflation. D) an increase in the rate of inflation.
Suppose that changes in the interest rate have absolutely no effect on the demand for money. The resulting ________ LM curve causes monetary policy to have ________ effect in changing income
A) horizontal, no B) horizontal, an unusually strong C) vertical, no D) vertical, an unusually strong
TANF sets a lifetime cap for benefits at 10 years.
Answer the following statement true (T) or false (F)