Refer to the information provided in Table 36.3 below to answer the question(s) that follow. Table 36.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 36.3. The error for point D is equal to
A. -2.
B. -1.
C. +1.
D. +2.
Answer: C
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In the $160 to $180 price range in Figure 20.1, the absolute value of the price elasticity of demand is closest to
A. 9.0. B. 5.7. C. 0.175. D. 1.0.
During 1993-1994, Democratic Republic of Congo has experienced an inflation rate of more than 69 thousand % per year. This economic condition would best be described as:
What will be an ideal response?
The infamous "bridge to nowhere" was tucked into emergency spending intended for
A. rebuilding after Hurricane Katrina. B. the new lunar landing mission. C. the war in Iraq. D. elimination of Medicare entitlements.
If demand is highly elastic and supply shifts to the left:
A. price and quantity will hardly change at all. B. price will rise significantly; quantity hardly changes at all. C. price will hardly change at all; quantity will decline significantly. D. price will rise significantly and quantity will fall significantly.