In Exhibit 5-9, the price elasticity of supply for good X between points E and C is:

Most economists agree that the focus of fiscal policy is to

a. plan the economy. b. balance aggregate demand and aggregate supply. c. balance the federal budget. d. balance environmental needs and resources.

If the economy is in a recessionary gap, and the government attempts to balance the budget, the effect will be to

a. counteract the recession. b. worsen and prolong the recession. c. end the recession sooner. d. increase the level of real GDP.