Which of the following algebraic forms of a demand curve yields an isoelastic demand curve (i.e. a demand with constant elasticity)?
A. Q = a - bP + cI
B. log(Q) = a - b log(P) + c
log(I)
C. Q = a - b log(P) + c
log(I)
D. log(Q) = bP + cI
B. log(Q) = a - b log(P) + c
log(I)
Economics
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Wage rates fall. This increases __________ and the __________ curve shifts rightward
A) aggregate demand (AD); AD B) short-run aggregate supply (SRAS); AD C) short-run aggregate supply (SRAS); SRAS D) employment; AD E) none of the above
Economics
According to the Heckscher-Ohlin theory, if the proportion of labor to capital in a country is greater than the proportion of labor to capital in the rest of the world, we can conclude that the country is labor-abundant and will have a comparative advantage in the production of goods that use labor intensively.
Answer the following statement true (T) or false (F)
Economics