Author Question: Aglets are the metal or plastic tips on shoelaces that make it easier to lace your shoes. The demand ... (Read 71 times)

danielfitts88 · **on:** Jun 29, 2018

Aglets are the metal or plastic tips on shoelaces that make it easier to lace your shoes. The demand for aglets is probably

A) inelastic.
B) unit elastic.
C) elastic but not perfectly elastic.
D) perfectly elastic.

Question 2

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator.

a) Nominal GDP = 600; real GDP = 800.
b) Nominal GDP = 900; real GDP = 900.
c) Nominal GDP = 1,200; real GDP = 1,000

mtmmmmmk · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

a) The GDP deflator equals (600 800 ) 100, which is 75.
b) The GDP deflator equals (900 900 ) 100, which is 100.
c) The GDP deflator equals (1,200 1,000 ) 100, which is 120.