If widgets and gidgets are complements and both are normal goods, then a decrease in the demand for widgets will result from:
A. a decrease in the price of gidgets.
B. a decrease in income.
C. an increase in the price of widgets.
D. a decrease in the price of gidgets and a decrease in income.
Answer: B
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Changes in all of the following shift the supply curve of loanable funds EXCEPT
A) the real interest rate. B) wealth. C) disposable income. D) expected future income.
In order to measure what a country produces, we:
A.) Summarize total output in physical terms. B.) Count units of output. C.) Count the weight of different products. D.) Summarize the monetary value of output.
M1 differs from M2 in that:
A. M2 includes savings deposits, small-denomination time deposits, and money market mutual funds that are not included in M1. B. the assets in M2 are more liquid than the assets in M1. C. M1 includes currency and balances held in checking accounts, which are not included in M2. D. M1 is a broader measure of the money supply than M2.
Economists who focus on the need for fiscal austerity tend to focus on
A. the short run. B. the long run. C. both the short run and the long run. D. neither the short run or the long run.