At the start of a cost-push inflation,
A) the price level rises and real GDP does not change.
B) the price level remains constant and real GDP increases.
C) the price level rises and real GDP decreases.
D) the price level remains constant and real GDP decreases.
E) the price level and real GDP both increase.
C
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In the figure above, using the midpoint method, what is the price elasticity of demand when the price falls from $8 to $7?
A) 4.0 B) 5.0 C) 0.5 D) 0.4 E) 0.25
A major problem with the implementation of an annually balanced budget is that it: a. allows the national debt to burgeon with chronic deficits
b. relies upon government officials to budget for surpluses during economic booms in order to cover deficits during recessions. c. requires annual revenues to match with outlays even during times of war, when there is a sudden increase in military expenditures. d. magnifies the fluctuations in the business cycle. e. dampens swings in the business cycle.