A Measure of the Sensitivity or Responsiveness of One Variable

question 34

Multiple Choice

A measure of the sensitivity or responsiveness of one variable to another is:

• A) price.
• B) demand.
• C) supply.
• D) elasticity.

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Definitions:

Unemployment Benefits

Payments made by the government or a private insurance company to individuals who are unemployed and actively looking for a job.

Bureau of Labor Statistics

A U.S. government agency that collects, processes, analyzes, and disseminates essential statistical data on labor market activity, working conditions, and price changes in the economy.

Demand-Pull Inflation

Inflation caused primarily by an increase in aggregate demand: too many dollars chasing too few goods.

Wage-Price Spiral

A situation where rising wages lead to higher prices, which in turn lead to demands for even higher wages, creating a cycle of inflation.