When there is extremely high and volatile inflation in an economy, the decision-making of firms leads to a very ________ SAS curve and thus relatively ________ cycles in real GDP
A) steep, mild
B) steep, violent
C) flat, mild
D) flat, violent
A
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Holding all other forces constant, if decreasing the price of a good leads to a decrease in total revenue, then the demand for the good must be
a. unit elastic. b. inelastic. c. elastic. d. None of the above is correct because a price decrease never leads to an decrease in total revenue.
During the past quarter of a century, the world's extreme poverty rate (per capita income of less than $1.25 per day) has
What will be an ideal response?
According to the data in the table, the inflation rate for 1996 was
Consider the following data from the Economic Report of the President.
a) 10.22 %
b) 2.28 %
c) 2.46 %
d) 1.1022 %
e) 11.022 %
One characteristic that has allowed the U.S. economy to change the mix of output in response to consumer demand is the
A. Factor mobility which is the increased ease with which resources move from one industry to another. B. Labor-intensive production process. C. Abundance of scarce resources. D. Large number of proprietorships.