If the cross-price elasticity of demand between two goods is -1.2, then the two goods are:

If expectations are adaptive, how will the economy adjust to a new long-run equilibrium in response to expansionary monetary policy? Support your answer with a graph of the Phillips curve

What will be an ideal response?

A true cost-of-living adjustment in response to a change in prices would compensate consumers so that they would be able to

A) purchase the same bundle they purchased before prices changed. B) achieve the same level of utility they did before prices changed. C) face the same choices they did before prices changed. D) achieve an increase in utility that is equal to the rate of inflation.