Author Question: Which of the following is false? a. When demand is elastic, quantity and total revenue change in ... (Read 12 times)

maegan_martin · **on:** Jun 30, 2018

Which of the following is false?
a. When demand is elastic, quantity and total revenue change in the same direction along it.
b. When demand is inelastic, quantity and total revenue change in the opposite direction along it.
c. When supply is elastic, quantity and total revenue change in the same direction along it.
d. When supply is inelastic, quantity and total revenue change in the opposite direction along it.

Question 2

Which of the following pairs of policies have inconsistent effects on aggregate demand?
a. A tax increase and an increase in the money supply.
b. A transfer payment increase and an increase in the money supply.
c. A reduction in government purchases and a reduction of the money supply.
d. none of the above