Other things equal, a country's long-run aggregate supply will ...

[mcmcdaniel]

Other things equal, a country's long-run aggregate supply will shift to the right when the productivity of labor rises.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Calculate the cross-price elasticity of demand between computers and printers, where a 10 percent decrease in the price of computers results in a 15 percent increase in the demand for printers.

[lucas dlamini]

Answer to Question 1

True

Answer to Question 2

In this case, the cross-price elasticity of demand is -1.5.

Cross-price elasticity of demand = ( in the demand for good A) / ( in the price of B) = +15 -10 = -1.5

[mcmcdaniel]

Thanks for the timely response, appreciate it

[LVPMS]

Excellent