Refer to the table shown to answer the question. Between $2 and $2.20, demand is:PriceQuantity Demanded$1.60130$1.80120$2.00110$2.20100$2.4090$2.6080
A. elastic.
B. inelastic.
C. unit elastic.
D. perfectly elastic.
Answer: C
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Inflation targeting is one policy that attempts to deal with the problem of:
a. dollarization. b. time inconsistency. c. the tradeoff between inflation and unemployment. d. the liquidity trap. e. none of the above.
The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
a. produce at the level in which price equals long-run average cost. b. operate at minimum long-run average cost. c. overutilize its insufficient capacity. d. none of these.
If autonomous consumption is $5,000 . the MPC is 0.7, net taxes are $2,000 . investment spending is $4,000 . and government purchases equal $2,500, and NX = $0, what is equilibrium GDP?
a. $14,428.6 b. $33,666.7 c. $40,800 d. $43,000 e. $45,000
What causes the natural rate of unemployment to exist?
What will be an ideal response?