The price elasticity of demand depends on the
A) proportion of consumers' budgets spent on the good.
B) number of available substitutes.
C) extent to which the commodity is a luxury.
D) all of the above.
D
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A polluting source that cannot be identified accurately and degrades the environment in a diffuse, indirect way is a
a. stationary source c. nonpoint source b. point source d. mobile source
Real GDP
A) fluctuates from year to year but is always below potential GDP. B) fluctuates around potential GDP. C) grows at a constant 3 to 4 percent per year. D) can be called potential GDP when it is adjusted for price changes.
At the point where actual inflation is equal to expected inflation,
A) the short-run Phillips curve intersects the long-run Phillips curve. B) the short-run Phillips curve is the same as the long-run Phillips curve. C) the unemployment rate is zero. D) there is no short-run Phillips curve, as this situation only occurs in the long run.
When the economy is disturbed by a change in the output market
A) a fixed exchange rate has an advantage over a flexible rate. B) a floating exchange rate has an advantage over a fixed rate. C) a crawling peg exchange rate has an advantage over a flexible rate. D) a floating exchange rate has the same effect as fixed rate. E) a flexible exchange rate is not as effective as a fixed exchange rate.