Data indicate that the velocity of M1 is greater than the velocity of M2

Incorporation of expectations into economic decision making indicates that in the long run:

a. inflation relates directly to unemployment. b. inflation is inversely related to unemployment. c. the Phillips curve is vertical at the natural rate of unemployment. d. high unemployment is a primary cause of inflation.

Clorox Bleach and generic brands have the exact same proportions of chlorine and other active ingredients. The reason that people continue to purchase Clorox at twice the price of the generic brand is the

a. price elasticity of demand classifies them as belonging to the same market b. low cross elasticity between Clorox and the generic brand c. high cross elasticity between Clorox and the generic brand d. perceived differences on the part of consumers e. income elasticity of demand is higher for the Clorox brand