In the basic aggregate demand - aggregate supply model, an increase in government purchases will in the short run lead to ______ in real GDP and ______ in the price level.

In a situation where an artist is selling his own work to the galleries, the agent is

a. The artist b. The gallery c. Both of the above d. None of the above

Which of the following statements is true? Other things equal, the demand for labor will be less elastic the:

A. easier it is to substitute capital for labor. B. greater the elasticity of resource supply. C. greater the elasticity of product demand. D. smaller the ratio of labor costs to total costs.