In Figure 5-3, the price elasticity of demand equals __________ between points T and U and equals __________ between points V and W
a.
0.33; 1.86
b.
0.54; 3
c.
3; 0.54
d.
1.86; 0.33
e.
2; 2
d
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Refer to the table. An interest rate of 2 percent is not sustainable because:
A. the demand for bonds in the bond market will fall and the interest rate will fall.
B. the demand for bonds in the bond market will rise and the interest rate will fall.
C. the supply of bonds in the bond market will decline and the interest rate will rise.
D. the supply of bonds in the bond market will rise and the interest rate will rise.
Refer to the information given. If the price level unexpectedly declines from 100 to 75, the level of real output in the short run will:
Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the
price level (P) initially is 100, and prices and wages are flexible both upward and downward.
Use the following short-run aggregate supply schedules to answer the question.
A. rise from $500 to $560.
B. fall from $500 to $440.
C. fall from $560 to $500.
D. rise from $440 to $500.