If two goods are complementary, the cross elasticity will be negative

Indicate whether the statement is true or false

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Economics

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Suppose the economy is in long-run equilibrium. If there is an increase in government purchases at the same time there is a large increase in the price of oil, then in the short-run

a. real GDP will rise and the price level might rise, fall, or stay the same. b. real GDP will fall and the price level might rise, fall, or stay the same. c. the price level will rise, and real GDP might rise, fall, or stay the same. d. the price level will fall, and real GDP might rise, fall, or stay the same.

Economics

Which of the following correctly describes actions of the U.S. government during the recession of 2008-2009?

a. It refused to provide banks funding and made no significant changes in government spending. b. It refused to provide banks funding but made a large increase in government spending. c. It became part owner of some banks but made no significant change in government spending d. It became part owner of some banks and made a large increase in government spending.

Economics