Tacos and pizza are substitutes. If a 2 percent change in the price of a taco leads to a 4 percent change in the demand for pizza, the cross elasticity of demand equals

An increase in the money supply in the Friedman-Lucas money surprise model

A) reduces aggregate output, raises the price level, and reduces the real interest rate. B) increases aggregate output, reduces the price level, and reduces the real interest rate. C) increases aggregate output, raises the price level, and reduces the real interest rate. D) reduces aggregate output, raises the price level, and raises the real interest rate.

The Great Depression and the New Deal transformed the U.S. into which type of economy?

(a) Laissez-faire (b) Socialist (c) Mixed (d) Communist