If an increase in the price of good A does not change its quantity demanded, then the price elasticity of demand for good A is said to be:
a. perfectly elastic

A tax imposed by a state or local government on retail sales of most products is

A) an excise tax. B) a sales tax. C) a consumption tax. D) a social service tax.

In the fixed-price Keynesian model, what would be the impact of an increase in aggregate expenditure on the aggregate demand curve and real GDP?

a. The aggregate demand curve would shift rightward and real GDP would increase. b. The aggregate demand curve would shift leftward and real GDP would decrease. c. The aggregate demand curve would shift rightward and real GDP would decrease. d. The aggregate demand curve would shift leftward and real GDP would increase. e. The aggregate demand curve and real GDP would both remain constant.