Rubin's Classic Book Shop has been advised that raising prices would lead to higher revenues because his product demand is elastic. The consultant giving this advice should be fired for bad information

"The price level may fall but it will not necessarily lower the interest rate, not if we are in a liquidity trap." This is a statement a __________ economist might make as an explanation of why the economy __________ pull out of a recession

A) Classical; will B) Classical; may not be able to C) Keynesian; will D) Keynesian; may not be able to

Three basic decisions must be made by all economies. What are they?

A. How much will be produced, when it will be produced, and how much it will cost. B. What the price of each good will be, who will produce each good, and who will consume each good. C. What will be produced, how goods will be produced, and for whom goods will be produced. D. How the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply.