Typical estimates of the sacrifice ratio suggest that a one-percentage-point reduction in the inflation rate requires
a. a sacrifice of 5 percent of annual output.
b. a sacrifice of 5 percent of government spending.
c. an increase in the unemployment rate of 5 percentage points.
d. a 5 percent increase in the government budget deficit.
a
Economics
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Total revenues reach a maximum when
A) demand is elastic. B) demand is inelastic. C) demand is unit-elastic. D) price elasticity is at a minimum.
Economics
Billy's Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100 . The price for each of the 275 units sold was $95 . Total profit for Billy's Bean Bag Emporium would be
a. -$3,875. b. $26,125. c. $28,500. d. $30,000.
Economics