If two products are complements, the ________ elasticity of demand is ________.

A. cross-price; negative
B. cross-price; positive
C. income; positive
D. income; negative


Answer: A

Economics

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In a certain economy, the components of aggregate spending are given by: C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?

A. 925 B. 450 C. 1,125 D. 370

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The statement that "at 10 percent, the interest rate is too high for families to buy a home they could have afforded when the interest rate was below 7 percent ," is a(n)

a. positive statement b. normative statement c. morally ambiguous philosophical position d. affront to the American dream e. value judgment

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How much capital each laborer works with is referred to as the

a. labor productivity b. capital productivity c. the marginal factor of capital to labor ratio d. the capital-labor ratio e. capital deepening

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The real, effective exchange rate is:

a. The same as the nominal, effective exchange rate. b. The value of one currency in terms of another currency. c. The nominal, bilateral exchange rate adjusted for the international price levels of the two countries. d. The weighted-average value of a currency relative to many foreign currencies. e. The nominal, effective exchange rate adjusted for a nation's price level relative to many foreign countries' prices.

Economics