This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is true of Simple Keynesian model? a. Price level increases with an increase ... (Read 64 times)

audragclark

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
Which of the following is true of Simple Keynesian model?
 a. Price level increases with an increase in aggregate demand.
 b. The aggregate supply curve is assumed to be perfectly inelastic.
  c. The aggregate demand curve is assumed to be perfectly elastic.
  d. Price level is solely determined by the aggregate demand curve.
  e. Changes in aggregate demand determines equilibrium real GDP.

Question 2

The price of stadium seats at a baseball game increases from 20 to 30 and ticket sales fall from 45,000 per game to 35,000 per game. If other things remained constant, then it appears that the price elasticity of demand is:
 a. elastic.
 b. inelastic.
 c. unit elastic.
 d. unit inelastic.
  e. equal to zero.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mathjasmine

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

b


audragclark

  • Member
  • Posts: 579
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

ttt030911

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

A true albino squirrel. Note the pink eyes. A true albino squirrel. Note the pink eyes.
Cross-sectional data showing that the amount of effort spent on personal health care increases with Cross-sectional data showing that the amount of effort spent on personal health care increases with
The Head Start program was designed to increase the school readiness of low-income children. The Head Start program was designed to increase the school readiness of low-income children.
The level in the coolant recovery system raises and lowers with engine temperature. The level in the coolant recovery system raises and lowers with engine temperature.
The Meselson–Radding model for homologous recombination The Meselson–Radding model for homologous recombination
The Steady State of the Solow Model The Steady State of the Solow Model
Video: Mechanics of Sound Animation

For a complete list of videos, visit our video library