The formula for elasticity is given by
A. (Q/P)(1/slope).
B. ?Q/Q/?P/P.
C. (P/Q)(slope).
D. (Q/P)(slope).
Answer: B
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Refer to Figure 28-9. A supply shock, such as rising oil prices, would be depicted as a movement from
A) C to E to B. B) C to D to A. C) C to B to A. D) A to B to C. E) A to D to C.
Given the values in the table above, the IS curve is ________
A) Y = 34.6 - 2r B) Y = 8.65 - 2r C) Y = 22.6 - 2r D) Y = 8.33 - 0.67r E) none of the above
The price elasticity for beef is -0.5. If price for beef in the market increases (by a small amount), beef producers can expect their total value of sales (total revenue) to:
a. increase b. decrease c. stay the same d. can't tell from the available information
When the Federal Reserve sells U.S. government securities on the open market, this tends to ____ banks reserves and ______ the money supply.
A. raise; raise B. lower; lower C. raise; lower D. lower; raise