Consider the following types of demand curves:
a. a vertical demand curve
b. a horizontal demand curve
c. a linear downward-sloping demand curve
Which of the demand curves listed exhibits a price elasticity of demand coefficient that remains constant along the demand curve?
A) a only
B) b only
C) a and b only
D) a, b, and c
Answer: C
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The liquidity of money refers to
A) the amount of gold it is backed by. B) how quickly it can be disposed of without high transaction costs. C) asymmetric information. D) the standard of deferred payments and how quickly those payments can be made.
Empirical evidence suggests that, when unemployment benefits run out, the probability that an unemployed person will find a job
A) remains constant. B) goes down by 20 percent. C) about doubles. D) about triples.
Real wages of manufacturing workers
a. rose between 1860 and 1890, but then fell for much of the period until 1920. b. remained fairly stable until 1900, but then rose between 1900 and 1914. c. followed a general upward trend from 1860 through 1920. d. exhibited dramatic periods of rise and fall between 1860 and 1920.
If real GDP is $21 trillion, consumption is $14 trillion, planned investment is $4 trillion, government purchases are $4 trillion, net exports are -$1 trillion, then the unintended inventory adjustment is:
a. -$2 trillion. b. -$1 trillion. c. $0. d. $1 trillion.