Which products are most likely to be most price elastic?
A. China and glassware
B. Sugar and eggs
C. Electricity and housing
D. Clothing and auto repair
Answer: A
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Optimal decisions are made based upon the concept of opportunity cost.
Answer the following statement true (T) or false (F)
Evidence from the United States and other foreign countries indicates that
A) there is a strong positive association between inflation and growth rate of money over long periods of time. B) there is little support for the assertion that "inflation is always and everywhere a monetary phenomenon." C) countries with low monetary growth rates tend to experience higher rates of inflation, all else being constant. D) money growth is clearly unrelated to inflation.
What is the difference between a sterilized and non-sterilized central bank intervention in the foreign exchange market?
What will be an ideal response?
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A