If the economy goes into a recession and incomes fall, what happens in the markets for normal goods?

A. Equilibrium price and quantity both rise.
B. Equilibrium price and quantity both fall.
C. Equilibrium price falls, and the quantity rises.
D. Equilibrium price rises, and the quantity falls.


Ans: B. Equilibrium price and quantity both fall.

Economics

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Refer to the information provided in Table 36.2 below to answer the question(s) that follow. Table 36.2 PointAggregate Income (Y)Aggregate Consumption (C)  A  10  14   B  20  23  C  30  25  D  40  26  E  50  34   F  60  39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 36.2. The error for point A is equal to

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Economics

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Economics