To stabilize output, the Federal Reserve will _____ the money supply when aggregate demand falls

The ____________ model best explains intra-industry trade.

a. Ricardian b. Heckscher-Ohlin c. monopolistic competition d. specific-factors

Using average price and average quantity, calculate the price elasticity of demand if a price rise from $8 to $10 and decreases the quantity demanded from 20 units to 15 units. The price elasticity of demand equals

A) 2.5. B) 1.29. C) 0.78. D) 0.06