If two goods are complements, their cross-price elasticity will be
a. positive.
b. negative.
c. zero.
d. equal to the difference between the income elasticities of demand for the two goods.
b
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Keeping landing fees low at airports during the “peak” hours
A. perpetuates congestion during those hours. B. is politically unpopular. C. contributes to efficient allocation of airport facilities. D. would lessen the problem of delayed flight landings.
Higher taxes affect real GDP indirectly through both the consumption channel and the output supply channel
a. True b. False Indicate whether the statement is true or false
The median voter
a. is the voter exactly in the middle of the distribution. b. is the voter whose preferred outcome beats any other proposal in a two-way race. c. always has more than half the votes on his side in a two-way race. d. All of the above are correct.