If a product has very few substitutes, demand elasticity is likely to be
A) 1.
B) elastic.
C) infinitely elastic.
D) inelastic.
D
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Discuss the national security argument as a case against free trade. What is the problem with this argument?
What will be an ideal response?
Lerner's view on debt financing is
A. Future generations bear a burden of external debt. B. Burden of debt can be transferred across generations. C. Internal debt creates no burden for the future generations. D. Government debt crowds-out the available funds for private sector.
The average cost curve shows the total cost divided by quantity produced for various levels of output.
Answer the following statement true (T) or false (F)