The leading center of Eurocurrency trading is

Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?

a. The aggregate demand curve is relatively flat. b. The aggregate demand curve is relatively steep. c. The short-run aggregate supply curve is relatively flat. d. The aggregate demand curve is vertical. e. The short-run aggregate supply curve is vertical.

If a sandwich shop near campus increases its prices by 5 percent, but revenues from its sales are unchanged, the price elasticity of demand for the services offered by the sandwich shop must be

a. elastic. b. of unitary elasticity. c. inelastic. d. equal to 0.5.