Consider the above figure. If the aggregate demand fell from AD1 to AD2, our nation would be experiencing
A) an inflationary gap.
B) a recessionary gap.
C) overemployment.
D) rising prices.
B
Economics
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Why do economists use the concept of elasticity in addition to measurement of the slope of the demand curve?
a. Mathematical equations are favored over graphical analysis. b. Elasticities are independent of the units of measure. c. The concept of elasticity can be used in other areas of economics, whereas the slope of the demand curve is only useful in demand analysis. d. These terms are interchangeable, but elasticity has the more professional sound.
Economics
Discuss the changes in regulations of financial firms during the 1990 and whether the proposed benefits occurred.
What will be an ideal response?
Economics