Demand for a good is inelastic if:
A. total revenue decreases when price increases.
B. the quantity effect outweighs the price effect of a price increase.
C. the absolute value of price elasticity is greater than 1.
D. total revenue increases when price increases.
D. total revenue increases when price increases.
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Rank the following assets from most liquid to least liquid.a) Common stockb) Housesc) Currencyd) Arte) Savings accountsf) Checking account deposits.
What will be an ideal response?
In exhibit 9-2, the marginal propensity to save equals
What will be an ideal response?