You observed last week that the price of organic tomatoes in Ames was $4 per pound and that the total quantity of organic tomatoes consumed in Ames was 50 pounds. This week, you observe the price of organic tomatoes increased to $5 per pound and consumption decreased to 30 pounds. What is the elasticity of demand for organic tomatoes?

In periods when prices are falling, on average,

A) real GDP will grow as fast as nominal GDP. B) real GDP will grow slower than nominal GDP. C) real GDP will grow faster than nominal GDP. D) one cannot calculate real GDP.

Which statement best describes the current account balance in the short run?

A) Monetary expansion lowers the current account balance. B) Monetary expansion keeps the current account balance the same. C) Fiscal expansion increases the current account balance. D) Fiscal expansion keeps the current account balance the same. E) Monetary expansion increases the current account balance.