Which of the following examples shows a decrease in total revenue for an elastic price demand?
a. When the price of saws increases by 5 percent, the quantity demanded decreases by 9 percent.
b. When the price of nails decreases by 10 percent, the quantity demanded increases by 15 percent.
c. When the price of wrenches increases by 8 percent, the quantity demanded decreases by 5 percent.
d. When the price of pliers decreases by 3 percent, the quantity demanded increases by 5 percent.
a. When the price of saws increases by 5 percent, the quantity demanded decreases by 9 percent.
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Which combination of factors would most likely increase aggregate demand?
A. An increase in business taxes and a decrease in profit expectations. B. An increase in household indebtedness and a decrease in net exports. C. An increase in net exports and a decrease in government spending. D. An increase in consumer wealth and a decrease in interest rates.
What is the relationship among the AD, SRAS and LRAS curves when the economy is in macroeconomic equilibrium?
What will be an ideal response?
Assume that for the second quarter of 2012, actual real GDP was $125.5 billion and potential real GDP was $142.7 billion. According to Okun's law, the cyclical unemployment rate during the second quarter of 2012 was
A) 5.7%. B) 6.0%. C) 6.9%. D) 7.4%.
Government revenue from a tariff is equal to the amount of the tariff times the quantity imported
a. True b. False Indicate whether the statement is true or false