Suppose two goods are perfect substitutes. The price elasticity of demand of one of the goods is

The lon-run aggregate supply curve can be expressed by

A) output as a function of potential output. B) inflation as a function of past inflation. C) inflation as a function of past inflation and output gap. D) output as a function of inflation and output gap.

Free trade is viewed as key to economic development because

A) it encourages a faster spread of technology. B) it encourages a country's exports only. C) it brings in expensive new technology. D) none of the above is correct.