A straight-line downward-sloping demand curve has a price elasticity of demand that:
A. decreases as price decreases.
B. is unitary at all prices.
C. is zero at all prices.
D. increases as price decreases.
Answer: A
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A. is designed to reduce aggregate demand B. shifts the aggregate supply curve to the right C. can reduce the length of a recession D. is used when the inflation rate is high
Which of the following is the best example of a differentiated product?
A) beets in the local supermarket B) diamonds C) airlines D) running shoes E) electricity
Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars B) a decrease in the demand for imports from foreign countries C) a decrease in the supply of dollars D) a decrease in the demand for dollars
A period of economic expansion ends with a business cycle trough
Indicate whether the statement is true or false