If the population increases and input prices increase, the equilibrium price of a product will definitely increase
Indicate whether the statement is true or false
TRUE
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All of the following are true statements about the multiplier except
A) The formula for the multiplier overstates the real world multiplier when we take into account the impact of changes in GDP on imports, inflation and the interest rate. B) The larger the MPC, the larger the multiplier. C) The multiplier is the ratio of the change in real GDP to the change in autonomous expenditure. D) The multiplier makes the economy less sensitive to changes in autonomous expenditure.
Suppose the demand for good X is Q = 500P-1. This demand curve has a ________ (constant, variable) elasticity of demand equal to ________.
A. constant; -1 B. variable; -0.5 C. constant; -0.2 D. variable; -2
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
If the supply curves for the following goods were plotted, they all would slope upward except one. Which is the exception?
a. red Corvettes b. yogurt c. diamond rings d. original copies of the Mona Lisa e. wine from Greece