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When the product demand curve is Q = 130 - 10P and price is decreased from P1 = $10 to P2 = $9, the "point" price elasticity of demand at the point where the price is $9 is:
a. -2.12
b. -2.25
c. -0.44
d. -1.80
Suppose the consumption expenditure is C = $100 billion + 0.9*Y. Investment (I) is $100 billion, government spending (G) is $50 billion and exports (X) are $100 billion. Imports depend on the level of income as follows: M = 0.1*Y.
Describe the macroeconomic factors
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