Price elasticity of demand is generally:
A. greater in the long run than in the short run.
B. greater in the short run than in the long run.
C. the same in both the short run and the long run.
D. greater for "necessities" than it is for "luxuries."
Answer: A
Economics
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To eliminate an inflationary gap using fiscal policy, the government could
A) increase government expenditure on goods and services and simultaneously increase taxes by an equal amount. B) only decrease taxes. C) increase government expenditure on goods and services and simultaneously decrease taxes by an equal amount. D) decrease the quantity of money. E) increase taxes.
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Based on the table above, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire?
What will be an ideal response?
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