According to new classical economics, fiscal policy can change ...

[lunatika]

According to new classical economics, fiscal policy can change equilibrium real GDP only if it changes the price level or one of the determinants of aggregate supply, and people expect this change.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following pairs of goods would most likely exhibit a cross price elasticity of 2.2?
 a. hamburgers and fries
 b. peanut butter and jelly
 c. butter and margarine
 d. tennis balls and tennis rackets

[fraziera112]

Answer to Question 1

False

Answer to Question 2

c