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When prices fall below the equilibrium price, this can create excess demand causing a ______. When prices rise above the equilibrium price, this can create excess supply causing a ______. 

What does price elasticity of demand measure?

A demand curve is ______ sloping, meaning as the price and demand have an _____ relationship.

What is the “price” commonly called in the labor market?

The economy where all economic effort is devoted to goals passed down from the government or ruling class  would be best described as:

______ policies are policies determined by a nation’s central bank.  _____ policies are policies determined by the government (typically a legislative body).

If the price elasticity of demand is 3.5, what does this imply about the demand for the product?

Zero elasticity (also known as perfect inelasticity), when a change in percentage in price has zero change in quantity, has a horizontal demand curve. 

Between necessities and luxury items, which are more inelastic? Why?

Imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest rate shift makes intuitive sense.