If an increase in price causes total revenue to decrease, we can conclude that demand is price elastic
Indicate whether the statement is true or false
TRUE
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
If a policymaker wants to stimulate the economy, a ________ would be preferable to a ________
A) lower-valued multiplier; higher valued multiplier B) high MPS; low MPS C) low MPC; high MPC D) high MPC; low MPC
A tax cut can best be characterized as
A. Either fiscal or supply-side policy. B. Fiscal policy only. C. Monetary policy only. D. Supply-side policy only.
The price of A falls by 2 percent, and the quantity demanded of A increases by 2 percent. Meanwhile, the quantity demanded of B increases by 2 percent too. We would conclude that
A. demand for A is elastic, and A and B are substitutes. B. demand for A is unit-elastic, and A and B are complements. C. demand for A is inelastic, and A and B are unrelated. D. demand for A is elastic, and A and B are complements.