If a 5 percent cut in the price of a product causes the quantity demanded to rise by 10 percent, the demand is:
A. Inelastic
B. Elastic
C. Unit elastic
D. Perfectly elastic
B. Elastic
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Which of the following is not a reason why the U.S. economy has been more stable since 1950?
A) Unemployment insurance and other government programs curtail the decline in spending that occurs during a recession. B) Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP. C) Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP. D) The government has actively pursued policy to combat recessions and prolong expansions.
A hypothesis is a normative statement
a. True b. False Indicate whether the statement is true or false
When prices are falling, economists say that there is
a. disinflation. b. deflation. c. a contraction. d. an inverted inflation.
An increasing-cost industry will have
A. a perfectly elastic long-run supply curve. B. an upward sloping demand curve in the long run. C. a perfectly inelastic long-run supply curve. D. an upward sloping supply curve in the long run.