The federal government increases spending by $50 billion and the main effect is an increase in the price level. It must be true that the economy is operating on the

Clorox Bleach and generic brands have the exact same proportions of chlorine and other active ingredients. The reason that people continue to purchase Clorox at twice the price of the generic brand is the

a. price elasticity of demand classifies them as belonging to the same market b. low cross elasticity between Clorox and the generic brand c. high cross elasticity between Clorox and the generic brand d. perceived differences on the part of consumers e. income elasticity of demand is higher for the Clorox brand

Government transfer payments are income earned by individuals who work for the federal government

a. True b. False Indicate whether the statement is true or false