Which of the following is true about price elasticity of supply?
A) Price elasticity of supply = Percentage change in quantity supplied / Absolute change in price
B) Price elasticity of supply = Percentage change in quantity supplied / Percentage change in price
C) Price elasticity of supply = Percentage change in quantity supplied × Absolute change in price
D) Price elasticity of supply = Percentage change in quantity supplied × Percentage change in price
B
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By the standard of low-grade bonds, interest rates were ________ and monetary policy was ________ during the Great Depression
A) low; tight B) low; easy C) high; tight D) high; easy
The GNP and National Income (NI) figures are not equal because
a. business profits are included in GNP but not in NI. b. capital consumption allowance and productive resource income from the rest of the world are included in GNP but not in NI. c. all taxes must be deducted from GNP to arrive at NI. d. None of these.
If a tax cut of 3 percent causes the output supplied to increase by 6 percent, the absolute value of the tax elasticity of supply is
A. 6.0. B. 0.5. C. 18.0. D. 2.0.
Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A. the unemployment rate will be smaller than the rate before the expansionary monetary policy. B. the unemployment rate will be larger than the rate before the contractionary monetary policy. C. the unemployment rate will be the same rate as before the expansionary monetary policy. D. the unemployment rate can increase or decrease depending upon how much the LRAS will shift.