Potential GDP measures the capacity of the economy in terms of the actual goods and services to be produced

Consider a demand curve that has a constant elasticity value of 0. What happens to quantity demanded and total revenue when price increases?

A) The quantity demanded does not change but total revenue decreases. B) The quantity demanded and total revenue fall to zero. C) The quantity demanded and total revenue remain the same. D) The quantity demanded does not change but total revenue increases.

Which of the following correctly describes the difference between M1 and M2?

a. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver. b. M1 is made up of currency, traveler's checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits, small-denomination time deposits, and money market mutual funds. c. M1 is limited to currency, whereas M2 contains M1 plus travelers checks and money in checkable accounts. d. M1 includes currency and traveler's checks, whereas M2 contains M1 plus money in checking accounts.