When the percentage change in the quantity supplied is less than the percentage change in price, the supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly unit elastic.
E) perfectly elastic.
B
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Between 2000 and 2015, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?
A) The demand for PCs increased by more then the supply of PCs increased. B) The supply of PCs increased by more than the demand for PCs increased. C) The demand for PCs decreased by more than the supply of PCs increased. D) Both the supply of PCs and the demand for PCs decreased.
In "real business cycle" theory, as opposed to "traditional business cycle" theory, the govern- ment is viewed as an instrument to correct unevenness in economic growth caused by cycles
Indicate whether the statement is true or false
When the demand for loanable funds rises, the amount of money borrowed will ___________.
A. rise B. decline C. be unchanged
If the cross-price elasticity between goods X and Y is positive, we know the goods are:
A. substitutes. B. complements. C. inelastic. D. inferior goods.