Answer the next question on the basis of the following demand schedule.PriceQuantity Demanded$615243342516The price elasticity of demand is relatively inelastic (based on the midpoint formula)
A. over the entire $6-$1 price range.
B. in the $6-$5 price range only.
C. in the $3-$1 price range.
D. in the $6-$4 price range.
Answer: C
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Real business cycle theory emphasizes that an adverse supply shock will shift the LRAS curve leftward and cause a decline in Real GDP
Indicate whether the statement is true or false
If a country has a lower opportunity cost of producing oranges, then this is:
A. inefficient resource use. B. an absolute advantage. C. a situation in which oranges should be imported. D. a comparative advantage.
Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that:
A. real GDP per capita must be $200,000. B. the price-level index must be less than 100. C. labor productivity must be $0.50. D. nominal GDP must be between $10,000 and $20,000.
Which of the following is included in the narrow definition of the money supply?
a. Cash in bank vaults b. Savings deposits c. Money market mutual fund accounts d. Negotiable certificates of deposit e. Checkable deposits