If the price elasticity of supply is zero, then
a. supply is more elastic than it is in any other case.
b. the supply curve is horizontal.
c. the quantity supplied is the same, regardless of price.
d. a change in demand will cause a relatively small change in the equilibrium price.
c
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When the production possibilities curve is bowed out, resources are:
a. equally well-suited to production of both goods. b. not being used efficiently. c. not equally suited to the production of both types of goods. d. increasing as more of one good is produced. e. of an inferior quality.
Given a constant GDP gap, the higher the spending multiplier, the smaller will be the recessionary gap
a. True b. False Indicate whether the statement is true or false
If price rises, what happens to quantity demanded for a product?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
Persistent high inflation combined with high unemployment in an economy is known as _____
a. disinflation b. stagflation c. hyperinflation d. demand-pull inflation