If the short run elasticity of demand for bus service is 1.01, we would expect the long run elasticity of demand to be:
a. relatively inelastic.
b. greater than 1.01

Deflation will

A) increase the quantity of real GDP demanded. B) decrease aggregate demand. C) increase aggregate demand. D) decrease the quantity of real GDP demanded.

Dissaving occurs when the consumption function lies below the 45-degree line

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