_________is a measure of the way in which a quantity supplied leads to a change in price.

Jerry spends his entire income on two goods, Bran and Tea. Every month he spends half of his income on each of these goods. Jerry's income elasticity of demand for Bran is .75. What is the income elasticity of demand for Tea?

A) 1.25 B) .75 C) 1 D) Unknown with the information provided

If you were a rational expectations economist, you would argue that the goal for economic policy is to

a. discover the NAIRU and make sure the actual rate of unemployment doesn't fallbelow it b. discover a way to lower unemployment to two percent without inflation c. keep the inflation rate below 10 percent d. maintain inflation at 3 percent and unemployment at 4 percent e. maintain unemployment at 3 percent and inflation at 4 percent