The fact that the aggregate demand curve slopes downward means that aggregate expenditures increase when the price level decreases

If the percentage change in quantity demanded is greater than the percentage change in price, can you determine if the demand is elastic, unit elastic, or inelastic? Explain your answer

What will be an ideal response?

Government failure occurs when

a. intervention by the government in the market fails to provide the socially optimal quantity of goods produced b. the government fails to intervene in a market that has sizable externalities c. the government fails to protect the free market and is forced to nationalize d. the government must intervene in a market to provide the socially optimal quantity of goods e. the government imposes a tax when it should have used an obligatory control