Which of the following countries began liberal economic reforms during the 1980s and now have significantly more economic freedom than during the mid-1980s?

If the price of a good decreases from $9 to $6 and the quantity supplied decreases from 1,500 to 1,300, using the midpoint formula the elasticity of supply equals

A) 0.20. B) 2.80. C) 0.36. D) 0.40. E) 3.20.

Refer to Figure 27-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?

A) increase income taxes B) decrease government purchases C) increase government purchases D) sell Treasury bills