A change in government purchases has the greatest effect on the economy in the short run when _____.
a. the aggregate demand curve is relatively flat
b. the aggregate demand curve is relatively steep.
c. the short-run aggregate supply curve is relatively flat.
d. the aggregate demand curve is vertical.
e. the short-run aggregate supply curve is vertical.
c
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Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is
A) 0.5. B) 0.75. C) 1.33. D) 2.00.
How would you choose to estimate a production function for a single plant? How would you choose to estimate a production function for a number of firms in an industry? Explain
What will be an ideal response?
Regulation that is based upon the cost of providing the good or service is known as
A) rate-of-return regulation. B) cost-of-service regulation. C) social regulation. D) deregulation.
The quantity demanded is always equal to the quantity supplied
Indicate whether the statement is true or false