The elasticity of supply does NOT depend on
A) resource substitution possibilities.
B) the fraction of income spent on the product.
C) the time elapsed since the price change.
D) none of the above because all of the factors listed affect the elasticity of supply.
B
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This year a country loaned more to the rest of the world than it borrowed from the rest of the world. In addition, the country has invested more in the rest of the world than other countries have invested in it
The country is currently a ________ and also a ________. A) net lender; creditor nation B) net borrower; creditor nation C) net borrower; debtor nation D) debtor nation; net lender
Minimum wage was first established by ______.
a. city governments b. county governments c. state governments d. the federal government
Answer the following questions true (T) or false (F)
1. YFE represents the level of potential GDP in the economy. 2. Real GDP is equal to nominal GDP adjusted for productivity. 3. The marginal propensity to consume is equal to the percent change in consumption with respect to a change in income.
The effect of monetary policy is greatest
A. If the money demand curve is elastic. B. In the liquidity trap. C. When investment demand becomes more responsive to changes in the interest rate. D. If lenders and borrowers have low expectations about the economy.