We should never assume that an inelastic demand curve is a perfectly inelastic demand curve because
A) perfectly inelastic demand curves are rare.
B) an inelastic demand curve may be perfectly inelastic at some times but not others.
C) an inelastic demand curve may be elastic at low prices.
D) there has never been evidence of a perfectly inelastic demand curve.
A
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Which of the following statements is TRUE?
A) The long-run aggregate supply curve is upward sloping. B) The long-run aggregate demand curve is upward sloping. C) The short-run aggregate supply curve is vertical. D) The long-run aggregate supply curve is vertical.
The impact of an increase in the money supply is a(n):
a. increase in the interest rate, which in turn stimulates investment and GDP. b. decrease in the interest rate, which in turn stimulates investment and GDP. c. reduction in the general level of prices, which will increase the disposable income of households. d. improvement in technology, which will stimulate both output and employment.