Refer to the information. Over the $7-$5 price range, demand is
What will be an ideal response?
inelastic.
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On the basis of the equation of exchange, the policy makers of an economy predicted that an increase in money supply would result in an increase in real gross domestic product. This prediction was based on the assumption that: a. there were no fluctuations in the interest rate
b. the velocity of money in the economy did not increase. c. the nominal gross domestic product of the economy was constant. d. the discount rate was fixed.
________________: the practice of exchanging favors, especially in politics by reciprocal voting for each other's proposed legislation.
Fill in the blank(s) with the appropriate word(s).
If the demand for computers increases as consumers' incomes rise, then computers are:
A. a complementary good. B. an inferior good. C. a substitute good. D. a normal good.
If you are told that the government had an actual budget deficit of $50 billion, then you would:
A. know that fiscal policy was expansionary. B. know that fiscal policy was producing a cyclical deficit. C. not be able to determine the direction of fiscal policy from the information given. D. know that fiscal policy was contractionary.