When demand is elastic
A. a proportionately small change in price leads to a proportionately large change in quantity supplied.
B. a proportionately small change in price leads to a proportionately small change in quantity demanded.
C. a proportionately small change in price leads to a proportionately large change in quantity demanded.
D. a proportionately small change in price leads to a proportionately small change in quantity supplied.
Answer: C
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
The quantity theory of money argues that, in the long run, the percentage change in money will create an equal percentage change in
A) velocity. B) real GDP. C) potential GDP. D) the price level.
In a monopolistically competitive market, having a large number of firms in the market means that
A) no firm attempts to take into account the reaction of rival firms. B) individual firms will have a large portion of the market giving them monopoly power. C) firms will get together and collude because this will be the only way to earn monopoly profits. D) firms will cooperate with each other to drive competitors out of the market.
Since World War II, the consumer price index has increased by an average of _____
a. 1.4 percent per year b. 2.1 percent per year c. 6.4 percent per year d. 5.6 percent per year e. 3.5 percent per year