Based on evidence from the turn of the century, the income elasticity of flour and meal
a. is greater than one.
b. is less than one.
c. approaches infinity.
d. equals zero.
b. is less than one.
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If a firm is successful in its efforts to reduce the price elasticity of demand for its product, all else constant, the optimal markup that can be used in setting price will increase
Indicate whether the statement is true or false
Externalities can be produced by ____________, as well as ____________.
A. individuals; firms B. market prices; market incomes C. oceans; streams D. none of these answer options are correct.
? Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase:
A. ?both the price level and real GDP. B. real GDP without raising the price level. C. the price level without affecting real GDP. D. ?the price level but reduce real GDP.
If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:
A. 3½. B. 4. C. 5. D. 10.