Economists distinguish among the immediate period, the short run, and the long run by noting that
A. supply is most elastic in the short run and perfectly inelastic in the immediate period.
B. supply is most elastic in the short run and perfectly inelastic in the long run.
C. demand is most elastic in the long run and perfectly inelastic in the immediate period.
D. supply is most elastic in the long run and perfectly inelastic in the immediate period.
Answer: D
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When considering the demand for money curve, the interest rate
A) is the price of holding money. B) varies negatively with the transactions demand for money. C) will have a positive relationship with the quantity of money demanded. D) is independent of the opportunity cost of money.
From the table below, choose the optimum option using marginal analysis
Option Total Cost ($) 1 150 2 100 3 80 4 70 5 90 6 120 What will be an ideal response?
Which of the following is TRUE about the long-run aggregate supply curve?
A) It is vertical at the level of potential GDP. B) It shows the relationship between the price level and real GDP when the economy is at full employment. C) It does not shift in response to temporary changes in aggregate demand. D) All of the above are true.
Which of the following statements is not correct?
a. The catch-up effect is based on the assumption of diminishing returns to capital. b. Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. c. Malthus argued that charity and government aid was an effective way to reduce poverty. d. Peace and justice are keys to growth.