Inferior goods are also known as substitute goods.

When RBC economists compare the volatility in their models to the data, what are they looking at?

A) The degree to which variables lead output over the business cycle B) The strength of procyclicality of different variables C) The amount of random variation in economic variables D) The degree to which different economic variables move together

If the price elasticity of supply of television sets is constant and equal to 3, a 10 percent increase in price will result in a change in quantity supplied equal to

A) 3 1/3 percent. B) 30 percent. C) 1/3 percent. D) -30 percent.