When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

When y changes, x stays the same. The line depicting this relationship would be

A) vertical. B) horizontal. C) linear with a negative slope. D) linear with a positive slope.

If the cross-price elasticity of demand between two goods is 0,

a. a price change for one good will be exactly offset by a price change for the other b. neither demand curve would shift following a change in the price of one of the goods c. there is no income effect between the two goods d. the demand for each good is price inelastic e. the demand for each good is price elastic