If the price increases by 20 percent and the quantity supplied increases by 40 percent, what does the elasticity of supply equal?

Which of the following is a criterion by which Gordon judges the desirability of any given level of actual real GDP?

A) Actual real GDP is too low if it causes the unemployment rate to be higher than necessary. B) Actual real GDP is too high if it strains a nation's ability to produce and puts upward pressure on the inflation rate. C) Actual real GDP is at a desirable level if there is no tendency for inflation to accelerate or decelerate. D) All of the above.

One model in economics is the permanent income hypothesis, which basically states that a household's expenditures will not react to a change in income unless that change in income is viewed as being permanent

How would you use this model to predict the expenditure patterns over the course of a year of a real estate agent who only sells homes during the months of April through July?