When a product's price increases from $9 to $11, the quantity demanded decreases from 1200 to 800 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:
a. 0.5
b. 2.0.
c. 0.25.
d. 4.0.
b
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In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a decrease in
A. taxes or an increase in government spending. B. government spending or an increase in taxes. C. saving or an increase in government spending. D. interest rates or a decrease in taxes.
How is the foreign exchange market similar to the stock market?
What will be an ideal response?
If a good is free, a rational consumer will continue to consume that good, irrespective of its marginal utility
a. True b. False Indicate whether the statement is true or false
An increase in inflationary expectations shifts the economy's short run Phillips curve to the left.
Answer the following statement true (T) or false (F)