Answer:
a. quantity demanded responds to a change in price.
Explanation:
The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes.
<u>Solution and Explanation:</u>
P-chart to be used
Center line = total number of errors/(no of samples*sample size) = 40/(20*80) = 0.025 = p-bar
standard deviation = sqrt((p-bar*(1-p-bar))/sample size) = = sqrt ((0.025*(1-0.025))/80) = 0.017
UCL = p-bar + z*standard deviation = 0.025 plus 3 multiply 0.0174553 = 0.0773659
LCL = p-bar - z*standard deviation = 0.025 minus 3 mulitply 0.0174553 = -0.0273659 = 0 (Adjusted)
Defect proportion of sample 1 = 5/80 = 0.0625
Defect proportion of sample 2 = 8/80 = 0.1
Defect proportion of sample 3 = 6/80 = 0.075
The process is not in control as Defect proportion of sample 2 is not within the control limits
Answer:
recessionary gap = 8 billion
so correct option is c) $8 billion
Explanation:
given data
MPC = 0.80
GDP = $40 billion
to find out
the size of the recessionary gap
solution
we get here first Multiplier that is
Multiplier = ..................1
Multiplier =
Multiplier = 5
so recessionary gap will be
recessionary gap = ................2
recessionary gap =
recessionary gap = 8 billion
so correct option is c) $8 billion
When the Fed purchases bonds on the open market, it expands the amount of money available to the general public by exchanging the bonds for cash. In contrast, if the Fed sells bonds, it reduces the money supply because it takes money out of circulation in return for bonds.
<h3>What is money supply?</h3>
Lower interest rates are often a result of increased money supply, which leads to more investment and more money in consumers' hands, which in turn boosts consumption. In response, companies place larger orders for raw materials and boost output.
People like to hold more money while interest rates are falling than when they are rising, and vice versa. Another method for bringing the money supply and demand into balance is through price changes. When people have more nominal money than they need, they spend it more quickly, driving up prices.
When the Fed purchases bonds on the open market, it expands the amount of money available to the general public by exchanging the bonds for cash. In contrast, if the Fed sells bonds, it reduces the money supply because it takes money out of circulation in return for bonds.
To learn more about money supply refer to:
brainly.com/question/1456933
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