86. The term “price elasticity of demand” measures:
a) The responsiveness of quantity demanded to changes in price
b) The responsiveness of price to changes in quantity demanded
c) The responsiveness of supply to changes in price
d) The responsiveness of income to changes in price
87. The term “monetary policy” refers to:
a) The use of government spending and taxation to influence the economy
b) The use of interest rates and money supply to influence the economy
c) The use of trade policies and tariffs to influence the economy
d) The use of exchange rate policies to influence the economy
88. The term “fiscal policy” refers to:
a) The use of interest rates and money supply to influence the economy
b) The use of government spending and taxation to influence the economy
c) The use of trade policies and tariffs to influence the economy
d) The use of exchange rate policies to influence the economy
89. The term “supply-side economics” refers to:
a) Policies that focus on stimulating demand in the economy
b) Policies that focus on increasing government spending
c) Policies that focus on reducing taxes and regulations to stimulate production
d) Policies that focus on controlling inflation through monetary measures
90. The term “budget deficit” refers to:
a) The excess of government revenue over expenditure
b) The excess of government expenditure over revenue
c) The excess of exports over imports in the budget
d) The excess of imports over exports in the budget
