In the late 1980s, the health benefits of oat bran were widely advertised. If the price of oats increased 50%, causing the quantity of oats supplied to increase by 40%, then the price elasticity of supply was
A) 1.25.
B) -1.25.
C) -0.80.
D) 0.80.
D
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Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative and absolute advantage in smoothies. B. Dan has the comparative and absolute advantage in sandwiches. C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies. D. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
Assuming rational expectations and complete wage and price flexibility, systematic stabilization policy impacts
A) real GDP. B) real wages. C) the unemployment rate. D) the inflation rate.
Gross fiscal expenditure in a country increased by $100,000 during a certain year. If the marginal propensity to save is 0.5, then real GDP in this country has increased by: a. $125,000. b. $50,000
c. $200,000. d. $100,000.
Are there any situations in which running a budget deficit is justified? Explain