If the quantity demanded changes proportionately the same as price, demand is said to be
A) vertical.
B) elastic.
C) unit elastic
D) inelastic.
C
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Explain how the Fed's response to inflation works its way through the economy to ultimately affecting real GDP and the price level
What will be an ideal response?
Should autonomous consumption fall by one dollar, the effect of this on equilibrium income can be offset if government expenditure
A) falls by one dollar. B) rises by one dollar. C) falls by 1/(1 - c) dollars. D) rises by 1/(1 - c) dollars. E) rises by c/(1 - c) dollars.
If there is currently a recessionary gap in the economy the Fed could work toward recovery by increasing the money supply and decreasing the interest rate
a. True b. False Indicate whether the statement is true or false
Peter Schran plays no favorites. It's one price for all customers. Under this circumstance, we know that
a. MR = MC b. P = MC c. TR = TC d. P = AR e. P = TR