Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. Based on this information, we know that good Y is
A. an inferior good.
B. a substitute for good X.
C. a complement for good X.
D. a normal good.
Answer: B
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The long-run aggregate supply curve:
A. is affected by the price level. B. never moves. C. shifts right when the economy experiences economic growth. D. shifts left when the economy experiences economic growth.
Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bob withdraws his $105 . If deflation was 5 percent during the year the money was deposited, then Bob's purchasing power has not changed
a. True b. False Indicate whether the statement is true or false
Most economists feel that overly strict financial regulation from 2000 to 2006 contributed to the financial crisis of 2007–2009.
Answer the following statement true (T) or false (F)
Explain Mundell's four conditions for adopting a single currency
What will be an ideal response?