If the price of orange juice rises 10%, and as a result the quantity demanded falls by 10%, then one can conclude that the demand for orange juice
A) is perfectly elastic.
B) is inelastic.
C) has a unitary elasticity.
D) has a constant elasticity.
C
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Which of the following might increase the supply curve of labor?
a. Easing licensing requirements. b. Elimination of discrimination against blacks. c. All of the answers are correct. d. Elimination of discrimination against females.
Business cycle peaks are always followed by the _____ phase.
Fill in the blank(s) with the appropriate word(s).
Total U.S. government expenditures as a percentage of GDP were largest during which of the following periods of time?
A. The Great Depression B. World War II C. The Vietnam War D. The Energy Crisis of the mid- and late-1970s