For every 1 percentage point that the actual unemployment rate exceeds the natural rate, a 2 percentage point negative GDP gap occurs. This is a statement of:

The price of a financial asset should be equal to

A) the face value of the asset divided by the interest rate. B) the present value of payments to be received from owning that asset. C) the face value of the asset. D) the present value of the sum of the coupon payments and the interest rate.

Dr. Franke, a perpetual critic of economics, notes that a recent consultant to his medical practice had advised him to raise the prices he charged in order to raise his business revenues. At a university fundraising event he commented to the Chancellor regarding "how ludicrous" some of his faculty members were in giving advice that would drive customers away. He advised the Chancellor that more

"practical, experienced faculty" such as hired by the local Technical College were needed. If demand for Dr. Franke's services is inelastic a. customers would increase and revenues drop b. customers would increase and revenues expand c. customers would decrease and revenues drop d. customers would decrease and revenues expand e. only cross-price elasticity is related to revenues