An advantage of using the midpoint method to calculate the price elasticity of demand is that it uses the metric system
a. True
b. False
Indicate whether the statement is true or false
False
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Economic growth will tend to be higher in a country that
a. has a low savings rate. b. has an open economy that encourages the rapid spread of technology. c. has an undeveloped system of property rights. d. does not grant patents to investors.
Inflation leads to ________
A) increased variability of relative prices only when it is anticipated B) increased variability of relative prices only when it is unanticipated C) increased variability of relative prices whether inflation is anticipated or not D) lower variability of the general price level only when it is very high E) none of the above
The long-run Phillips curve:
A. is downward sloping. B. is upward sloping. C. shows there is no tradeoff between unemployment and inflation. D. is horizontal at the natural rate of inflation.
If the fluctuations in the economy’s real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show the most rapid inflation occurs when
A. unemployment is the highest, and the lowest inflation occurs when unemployment is the lowest. B. AS grows most rapidly, and the lowest inflation occurs when AS grows most slowly. C. AD rises most slowly, and the lowest inflation occurs when AD rises most rapidly. D. output grows most rapidly and the lowest inflation when output grows most slowly.