Suppose that income increases and the quantity demanded of guitars stays the same. This means that the income elasticity of guitars is unit elastic.
Answer the following statement true (T) or false (F)
False
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If nominal GDP in 2001 is $9 trillion, and 2001 real GDP in 1996 prices is $6 trillion, the GDP deflator price index is
A) 7. B) 100. C) 150. D) 200.
If the long-run Phillips curve shifts to the right, then for any given rate of money growth and inflation the economy has
a. higher unemployment and lower output. b. higher unemployment and higher output. c. lower unemployment and lower output. d. lower unemployment and higher output.
When banks are in need of a short-term loan to meet reserve requirements, they often borrow from another bank through the ______.
a. New York Stock Exchange b. open market operations c. federal funds market d. government bonds market
In a free market, if the price of a good is below the equilibrium price, then;
A. sellers, dissatisfied with growing inventories, will lower their prices. B. sellers, dissatisfied with growing inventories, will raise their prices. C. the government will set a higher price to reestablish the market equilibrium. D. buyers, hoping to ensure they acquire the good, will bid the price higher.