The price of a bag of pretzels rises from $2 to $3 and the quantity demanded decreases from 100 to 60. What is the price elasticity of demand?
A) 1.0
B) 1.25
C) 40.0
D) 20.0
E) 0.80
B
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The long-run aggregate supply curve occurs at the level of real GDP consistent with
A) no inflation. B) the natural rate of unemployment. C) individuals' tastes and preferences. D) low levels of inflation.
According to the Monetarists a decrease in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending
A) increases; rises; increase; decreases B) increases; falls; increase; increases C) increases; falls; increase; decreases D) decreases; rises; increase; increases
To be considered officially unemployed, a person must be at least 16 years old
A. and not working. B. and not working but is actively seeking employment. C. and not in school and not working. D. and be a discouraged worker.
When there is no comparative advantage between countries
A. the benefits resulting from trade are increased. B. there are no gains from specialization and trade. C. there must be an absolute advantage. D. each should try and specialize in the production of a particular commodity.