Author Question: Business inventories tend to fall after an unexpected increase in aggregate demand. a. True b. ... (Read 81 times)

Jkov05 · **on:** Jun 30, 2018

Business inventories tend to fall after an unexpected increase in aggregate demand.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the short run elasticity of demand for widgets is 0.7 and the long run elasticity of demand for widgets is 1.5, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run.
a. Increase; increase.
b. Increase; decrease.
c. Decrease; increase.
d. Decrease; decrease.