If there is no response in quantity demanded to a change in price, demand is

Economists argue for free trade in import markets because

A) all consumers and producers benefit from importing goods. B) the gains to the U.S. producers outweigh the losses to the U.S. consumers. C) the gains to the U.S. consumers outweigh the losses to the U.S. producers. D) no one is made worse off by importing goods. E) importing goods decreases total surplus.

A theory suggesting that price stickiness leads to sluggish short-run adjustment of the price level to variations in aggregate demand is known as

A) new Keynesian flexible-price business cycles. B) new Keynesian inflation dynamics. C) real-business-cycle fixed-price business cycles. D) real-business-cycle inflation dynamics.