The automatic budget deficits and budget surpluses that occur in the federal budget over the business cycle

Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the:

a. Long-term real GDP growth rate will rise. b. Long-term real GDP growth rate will fall. c. Long-term real GDP growth rate will remain unchanged. d. Long-term inflation rate will fall. e. The international value of the domestic currency will fall.

Suppose an increase in symphony tickets prices reduces the total revenue. This is evidence that demand is:

A. price elastic. B. price inelastic. C. unitary elastic. D. perfectly elastic.