What does cross elasticity of demand between goods reveal about the nature of relationship between them?
Its sign reveals whether the goods are substitutes or complements. If the two goods are substitutes their cross elasticities of demand will normally be positive. The cross elasticities of demand for complement goods will normally be negative.
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A reduction in a country's rate of inflation should
A) increase its imports. B) increase its exports. C) lead to a negative trade balance. D) lead to an outflow of SDRs.
According to an old saying, when too much money is chasing too few goods, we have a(n)
A. recessionary gap. B. inflationary gap. C. full employment. D. paradox of thrift.
The Bureau of Labor Statistics (BLS) includes discouraged workers in its measure of the labor force
Indicate whether the statement is true or false
When demand for goods and services is high, firms are more likely to hire more workers
a. True b. False Indicate whether the statement is true or false