The cross elasticity between two goods is 2.5 . These goods are
a. perfect complements
b. imperfect complements
c. unrelated
d. substitutes
e. inferior
D
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of
A) $250,000. B) $125,000. C) $62,500. D) $0.
George Washington's troops at Valley Forge were almost destroyed by price controls
a. True b. False Indicate whether the statement is true or false
The rise in average living standards experienced by most industrialized countries:
A. has been more rapid since 1950 than before 1950. B. has been continuous over the course of human history. C. was more rapid before 1870 than after 1870. D. has resulted primarily from an increase in population worldwide.