Examlex
Monetary policy can be either a stabilizing influence on the economy or a source of instability. Give an explanation for both possibilities.
Unit Elastic
A situation in which the percentage change in quantity demanded is equal to the percentage change in price.
Inelastic
Describes a situation where the demand for or supply of a good or service is relatively unresponsive to changes in price.
Elasticity of Supply
A measure of how much the quantity supplied of a good changes in response to a change in its price.
Productive Capacity
The maximum output a company or economy can produce with its current resources and technology, without causing inflation.
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