If demand is elastic, a price reduction will lead to an increase in total revenue.
Answer the following statement true (T) or false (F)
True
If demand is elastic, a decrease in price will cause a larger increase in quantity demanded. Consumers respond in a big way to sales if demand is elastic, increasing revenues for sellers.
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If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined
A) the quantity of goods or services that can be produced by one hour of work B) nominal GDP C) labor force participation D) the working-age population Article Summary According to the Office for National Statistics in the United Kingdom, productivity in the UK in 2014 was well below the average of the G7 countries, only faring better than Japan. The G7 is a group of the seven most industrialized countries, and includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Compared to the G7 average, the UK was 20% less productive per hour worked, and output was also 20% worse when measured on a per worker basis. The productivity gap was the largest for the UK since estimates began in 1991. Worker productivity was lower in all of the G7 nations in 2014 than it would have been had trends prior to the 2007-2009 recession continued, with the productivity gap of 18 percent in the UK significantly higher than the 7% gap for the other G7 nations. In terms of output per hour worked, the UK was behind Germany, France, and the United States by 32 to 33 percentage points. Source: "UK's poor productivity figures show challenge for government," Guardian, September 18, 2015.
Monetarists believe that the type of monetary policy that would lead to greater economic stability is
A) a money supply rule. B) a constant money supply. C) a counter-cyclical monetary policy. D) a pro-cyclical monetary policy.