A decline in aggregate demand is analogous to an upward movement ...

[rl]

A decline in aggregate demand is analogous to an upward movement along the short-run Phillips curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Fantastic Cuts Hair Salon knows that a 15 increase in the price of their haircuts will result in a 5 decrease in the number of haircuts sold. What is the elasticity of demand facing Fantastic Cuts?
 a. 0.05
  b. 0.10
  c. 0.33
  d. 3.0

[katieost]

Answer to Question 1

False

Answer to Question 2

c