Demand is said to be ___________ when the quantity demanded is very responsive to changes in price.
a. elastic
b. unit elastic
c. inelastic
d. independent
a. elastic
Demand is said to be elastic when the quantity demanded is very responsive to changes in price.
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Expansionary fiscal policy can be used to reduce unemployment by
A) increasing long-run aggregate supply so as to raise real GDP. B) increasing aggregate demand so as to raise real GDP. C) reducing nominal wages so as to encourage firms to hire more workers. D) eliminating inefficiencies from labor markets.
Which of the following would shift the supply curve for gasoline to the right? a. an increase in the demand for gasoline
b. an increase in the price of gasoline. c. an increase in the number of producers of gasoline. d. an increase in the price of oil, an input into the production of gasoline.
Suppose output for a simple production process is given by Q = K + L, where K denotes capital, and L denotes labor. The price of labor is $2 per unit and the price of capital is $4 per unit. What would be the minimum costs of producing 10 units of output?
A. $10 B. $40 C. $20 D. It is impossible to say with the information given
The total annual market value of a nation's final output of goods and services computed at existing prices is called:
A. real GDP. B. aggregate income. C. nominal GDP. D. net national product.