The percentage change in quantity demanded of good A divided by the percentage change in price of good B is the formula for
a. cross-price elasticity of demand.
b. income elasticity of demand.
c. zero elasticity of demand.
d. infinite elasticity of demand.
a. cross-price elasticity of demand.
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During the Great Depression, the unemployment rate rose to a maximum of about
A) 10 percent. B) 25 percent. C) 50 percent. D) 13 percent. E) 67 percent.
In analyzing macroeconomic data during the past year, you have discovered that average labor productivity fell, but total output increased. What was most likely to have caused this?
A) There is nothing unusual in this outcome because this is what normally occurs. B) The capital—output ratio probably rose. C) There was an increase in labor input. D) Unemployment probably increased.
A perfectly horizontal demand curve has
A) zero elasticity. B) some positive finite elasticity. C) negative elasticity. D) perfect elasticity.
In response to the Great Recession of 2007-2009, when did the Federal Reserve first cut the federal funds rate to zero?
a. December 2007 b. June 2008 c. December 2008 d. January 2010