If aggregate demand turns out to be lower than anticipated, then the short-run equilibrium occurs at an output level ________ potential output. This difference between short-run equilibrium output and potential output is called a(n) ________ gap

A price cut will increase the total revenue a firm receives if the demand for its product is: a. elastic

b. inelastic. c. unit elastic. d. unit inelastic.

Suppose all individuals in a group have homothetic tastes. Then we can be sure that the group can be treated as a single representative consumer is if the group members also have identical tastes.

Answer the following statement true (T) or false (F)