If consumer purchases of a good are not very sensitive to the price of the good, economists say the demand for the good is relatively
a. inelastic.
b. elastic.
c. robust.
d. inverse.
A
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Which of the following algebraic forms for a demand curve yields an isoelastic demand curve?
A) Q = a - b log(P) + c log(I) B) Q = a - bP + cI C) log(Q) = a - b log(P) + c log(I) D) log(Q) = bP + cI
Given a fixed nominal interest rate on a loan, unanticipated deflation: a. decreases the burden of paying off the loan
b. increases the burden of paying off the loan. c. does not alter the burden of paying off the loan. d. has an indeterminate effect on the burden of paying off the loan.
Economists before Keynes assumed that equilibrium GDP occurred
a. automatically. b. only with the help of government stabilization. c. if spending was generally greater than output. d. only in socialist economies with central planning.
The unemployment rate is equal to the natural unemployment rate at
A) some point within the interior of the physical PPF but beyond the institutional PPF. B) some point within the interior of the physical PPF, but we cannot locate it with more accuracy. C) some point within the interior of the institutional PPF, but we cannot locate it with more accuracy. D) every point on the institutional PPF. E) every point on the physical PPF.