If demand is perfectly inelastic,
a. the percent change in quantity demanded divided by the percent change in price is zero
b. the demand curve is a vertical line
c. supply is perfectly inelastic too
d. consumers have power over prices
e. the percentage change in price divided by the percentage change in quantity demanded is zero
a. the percent change in quantity demanded divided by the percent change in price is zero
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"Privatization of government owned industries is likely to increase unemployment in the short run" is a ________ statement about ________ policy.
A. normative; monetary B. normative; structural C. positive; fiscal D. positive; structural
Which of the following would cause the long-run aggregate supply curve to shift?
A) an increase in the price level B) a decrease in the expected price level C) an increase in labor productivity D) an autonomous increase in consumption spending
In the long run, monetary policy can
a. change the form of inflation b. change the type of unemployment c. change the level of unemployment d. stop the flow of currency abroad e. change the rate of inflation
With reference to the consumption function, the 45-degree line represents
A. all points at which planned real saving is equal to real disposable income. B. all points at which real disposable income is equal to real consumption spending. C. the planned savings function. D. all points at which planned real saving is equal to planned real consumption spending.