Relative to the Short-Run Demand for Gasoline,the Long-Run Demand for Gasoline

question 30

Multiple Choice

Relative to the short-run demand for gasoline,the long-run demand for gasoline is

• A) probably more elastic since people need time to change automobiles and driving habits.
• B) probably less elastic since people need time to change automobiles and driving habits.
• C) probably more elastic because people can hoard this good.
• D) probably less elastic because people cannot store this good.

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Definitions:

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), which reflects the real quantity of goods and services produced.

Stagflation

A situation in economic where slow economic growth and high unemployment occur simultaneously with rising prices (inflation).

Aggregate Demand

Total pull for goods and services in an economy, measured at a specific wide price level during a prescribed time scope.

Economic Boom

A period characterized by significant expansion in the economy, marked by increased production and consumption, lower unemployment rates, and robust economic growth.