When calculating the arc elasticity of demand, the percentage change in price (quantity) should be based on the average of the starting and ending prices (quantities)
Indicate whether the statement is true or false
TRUE
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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; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as
a. e(P/P). b. e(P/P). c. e + P/P. d. e - P/P.
Pension funds resemble insurance companies by:
A. becoming better investments the longer you live. B. spreading risk. C. accepting deposits. D. pooling the savings of only large investors.
If two goods are considered complements and the price of one increases, the other good's
A. demand curve will shift to the right. B. supply curve will shift to the left. C. demand curve will shift to the left. D. supply curve will shift to the right.