If we observe that when the price of chocolate increases by 10%, total revenue increases by 10%, then the demand for chocolate is unit price elastic
a. True
b. False
Indicate whether the statement is true or false
False
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When used in a professional or technical sense, the law of supply and demand refers to
A. some vague influences on economic affairs. B. the fact that prices go up when commodities are scarce. C. the market forces that show how prices and quantities are determined. D. the controls that regulate the amount of scarce goods that each consumer can purchase.
Programs that automatically increase government spending (relative to revenue) during a recession and automatically decrease government spending (relative to revenue) during an economic boom are called:
a. discretionary fiscal policy. b. supply-side programs. c. automatic stabilizers. d. tax credits.
The M1 measure of the money supply equals
A) paper money plus coins in circulation. B) currency plus checking account balances. C) currency plus checking account balances plus traveler's checks. D) currency plus checking account balances plus traveler's checks plus savings account balances.
An increase in the required reserve ratio
A. will decrease the money supply. B. will increase the money supply. C. will decrease the discount rate. D. will not change the money supply.