The demand for goods such as heart medicine, cigarettes, and gasoline tends to be
A. perfectly elastic.
B. relatively elastic.
C. unit elastic.
D. relatively inelastic.
D. relatively inelastic.
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If a rent ceiling is set ________ the equilibrium price, the effect can result in a housing ________
A) below; surplus B) below; shortage C) above; shortage D) above; surplus E) equal to; surplus
In order to implement average cost pricing regulation, it is necessary to provide a natural monopolist with a subsidy equal to the economic loss
a. True b. False Indicate whether the statement is true or false
Real GDP per capita is found by dividing real GDP by the size of the labor force.
a. true b. false