Price elasticity of demand is calculated as the ratio of the change in quantity demanded to the change in price.
Answer the following statement true (T) or false (F)
True
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During the late 1960s, real GDP increased, unemployment fell, and the inflation rate started to rise. Which would have been the appropriate federal government policy combination to improve economic performance by lowering the inflation rate?
A) increase government expenditures, decrease taxes, increase the quantity of money B) increase government expenditures, decrease taxes, decrease the quantity of money C) decrease government expenditures, increase taxes, decrease the quantity of money D) do not change government expenditures or taxes , increase the quantity of money E) increase government expenditures, decrease taxes, do not change the quantity of money
The formula for calculating the tax multiplier is
a. MPC/(1 - MPC) b. MPC/(1 + MPC) c. -MPC/(MPC - 1) d. -MPC/(1 - MPC) e. MPC + (1 - MPC)
Which of the following statements is true?
A) Corporations can issue stocks and bonds, while proprietorships cannot. B) Corporations have one owner, while proprietorships have many owners. C) Corporations face fewer taxes than do proprietorships. D) Proprietorships have limited liability while corporations have unlimited liability.
A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?
A) The demand for sushi would decrease. B) The demand for sushi would increase. C) The demand for sushi would be unaffected, but the price would increase. D) The demand for sushi would be unaffected, but the price would decrease. E) The demand for sushi could increase or decrease.