The most important determinant of the price elasticity of demand for a good is
A) the share of the good in the consumer's budget. B) whether the good is a necessity or a luxury.
C) the definition of the market for a good. D) the availability of substitutes for the good.
D
Economics
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According to AD-AS model, the primary long-run effect of increases in the money supply is
A) higher price level. B) higher GDP. C) lower price level. D) lower GDP.
Economics
A debt that rises faster than nominal GDP will impose the following opportunity costs in the future:
a. A permanently higher tax burden. b. A period of inflation. c. Reduced government outlays relative to GDP d. Higher taxes relative to GDP. e. All of the above.
Economics