Economists use elasticity as a tool to measure
a. the relationship between people's attitudes and their income
b. the relationship between people's willingness to supply a good and their willingness to demand that good
c. people's sensitivity to changes in price or income
d. the effect of changes in supply on people's willingness to demand goods
e. the effect of changes in supply on the government's ability to tax
C
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Using the data in the above table, if the government sector runs a deficit of $250 billion and net exports equal -$500 billion, then saving must equal
A) $450 billion. B) $250 billion. C) $1,350 billion. D) $400 billion.
The three business cycle models differ mostly in their treatment of ________
A) aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) productivity shocks