1.One of the problems with fiscal policy is

The zero lower bound

Deficits

Inflation

The multiplier

2.Wonderbread has an elastic demand curve. If price were to increase because they started using a new kind of packaging, we would expect

Price to change a little and quantity sold change a little

Price to change a lot and quantity sold to change a little

Price to change a lot and quantity sold to change a lot

Price to change a little and quantity sold to change a lot

3.The intersection of the supply and demand curves shows us

The quantity sold

The price

The price and quantity sold

The elasticity

4.The most effective taxes are

On producers

On elastic goods

On salt

On inelastic goods

5.Roughly how much did the GDP fall in the middle of the pandemic?

50%

25%

10%

33%