Author Question: Both new classical economists and monetarists disagree with Keynesians about the optimal degree of ... (Read 39 times)

appyboo · **on:** Jun 30, 2018

Both new classical economists and monetarists disagree with Keynesians about the optimal degree of involvement of the government in determining the equilibrium level of real GDP.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the cross price elasticity of demand for fries with respect to hamburgers equals -1.2, then:
a. a 1 increase in the quantity of hamburgers purchased will lead to a 1.2 increase in the price of fries.
b. a 10 increase in the price of a hamburger will lead to a 12 increase in the quantity of fries demanded at a given price.
c. a 1 decrease in the price of a hamburger will lead to a 1.2 increase in the quantity of fries demanded at a given price.
d. a 10 increase in the quantity of hamburgers purchased will lead to a 12 increase in the price of fries.