Suppose the observed annual quantity of steel exchanged in the European market is 30 million metric tons, and the observed market price is 90 euros per ton. If the price elasticity of demand for steel is -0.3 in Europe, what is an appropriate value for the price coefficient (b) in a linear demand function ?

In the closed economy IS-LM model, an increase in government spending crowds-out

a. prices. b. the money supply. c. consumption. d. investment. e. both c and d.

(Last Word) Art Buchwald's article "Squaring the Economic Circle" humorously describes how:

A. a person's decision not to buy an automobile eventually reduces many people's incomes, including that of the person making the original decision. B. a price increase on a single product eventually leads to rapid inflation. C. an increase in imports eventually leads to a greater increase in exports. D. a government tax rate increase eventually results in the government collecting less tax revenue than before the tax rate hike.