"economics"exercise:Inflation

来源: 正保会计网校编辑：小鞠橘桔 2020/11/11 10:11:23　字体：大小

学习是一个不断积累的过程，每天学习一点，每天进步一点！为了帮助大家更高效地备考2021年CFA考试，正保会计网校每日为大家上新CFA习题供大家练习。让网校与您一起高效备考2021年CFA考试，梦想成真！

Questions 1:

Over a given period, the price of a commodity falls by 5.0%, and the quantity demanded rises by 7.5%. The price elasticity of demand for the commodity is best described as:

A、 perfectly elastic.

B、 elastic.

C 、inelastic.

Questions 2:

Assume economic activity is accelerating, inflation is increasing modestly, and unemployment is low. The economy is most likely in which phase of the business cycle?

A 、Peak

B、 Early expansion

C 、Late expansion

View answer resolution

【Answer to question 1】B

【analysis】

B is correct. If demand is elastic, a 1 percent reduction in price increases the quantity sold by more than 1 percent. Therefore, when demand is elastic, the magnitude (ignoring algebraic sign) of the coefficient is greater than one. In this case, price elasticity is:

economics exercise:Inflation

C is incorrect because if demand is inelastic, a 1 percent price reduction increases the quantity sold by less than 1 percent.

A is incorrect because if demand is perfectly elastic, a 1 percent price reduction increases the quantity demanded by an infinitely large percentage.

【Answer to question 2】（选项）

【analysis】

C is correct. The late expansion phase is characterized by acceleration of growth rate, decreasing of unemployment rate, and increasing of inflation rate.

economics exercise:Inflation