When the price of potato chips decreases, the demand for potato chip dip increases. This effect is measured by ______ elasticity of demand.
a. unit
b. revenue
c. cross-price
d. income
c. cross-price
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
________ refer to the ordinary fluctuations of real GDP around its long-run trend
Fill in the blank(s) with correct word
When the price of raisins falls, the quantity of raisins demanded rises. Explain this change in terms of income and substitution effects
What will be an ideal response?
If the money multiplier is 10, the sale of $1 billion of securities by the Fed on the open market causes a
A) $10 billion decrease in the money supply. B) $1 billion decrease in the money supply. C) $1 billion increase in the money supply. D) $10 billion increase in the money supply.