Deadweight loss is greatest when
a. both supply and demand are relatively inelastic
b. both supply and demand are relatively elastic
c. supply is elastic and demand is perfectly inelastic
d. demand is elastic and supply is perfectly inelastic
b. both supply and demand are relatively elastic
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Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action? A) real GDP and potential GDP B) real GDP and the inflation rate C) real GDP and the unemployment rate D) potential GDP and the inflation rate
Tickets for the Super Bowl are an example of supply that is
A) perfectly elastic. B) unit elastic. C) slightly inelastic. D) perfectly inelastic.
What actions would a modern Keynesian economist advocate to cure a recessionary gap?
What will be an ideal response?
One of the characteristics of a contestable market is that:
A. existing firms respond quickly to entry by lowering their price. B. consumers react quickly to a price change. C. all firms have different productive technology. D. there are sunk costs.