The post-World War II record shows that recessionary gaps may be long-lasting because ____ tends not to occur

When an increase in government purchases causes firms to purchase additional plant and equipment, we have seen a demonstration of

A. the multiplier effect. B. supply-side economics. C. the crowding-out effect. D. the investment accelerator. E. none of these answers.

Other things being equal, the longer a price change persists

A) the less is the elasticity of demand. B) the less chance a consumer will be able to adjust. C) the more the consumer will be willing to pay. D) the greater is the elasticity of demand.