Along a straight-line demand curve, total revenue is the highest when elasticity of demand is:
A. 1.
B. between zero and 1.
C. zero.
D. infinity.
Answer: A
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The nominal interest rate equals the real interest rate ________ the inflation rate
A) plus B) times C) minus D) divided by
When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward?
A) SRAS B) AD C) LRAS D) None of the above
What could cause a production possibilities curve to move down and to the left?
(A) Thousands of investors from overseas invest money in a nation's economy. (B) A baby boom 20 years ago results in a large number of young adults in the population. (C) An increase in the use of computer technology speeds up production. (D) A nation loses land after being defeated in a war.
Using Figure 3 above, suppose that the economy was at Y1. This level of GDP would be considered:
A. a long run level of output. B. a natural rate of output. C. recessionary. D. inflationary.