If the income elasticity of demand is 0.5, the good is
a. a luxury.
b. a normal good (but not a luxury).
c. an inferior good.
d. a Giffen good.
b
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Expansionary fiscal policy is used to increase aggregate demand in an attempt to fight rising inflation
Indicate whether the statement is true or false
Change in U.S. policy can lead to changes in inflationary expectations, interest rates, and exchange rates simultaneously as they all adjust to new equilibrium levels
Indicate whether the statement is true or false
The supply of oil for users in the United States
a. was never an issue of serious public concern until the 1970s. b. has never been an issue of serious concern by political leaders. c. has often been a topic for dire warnings and forecasts of oil depletion. d. has been more and more in doubt since the early 1980s.
The structural deficit declines as the economy moves toward full employment.
Answer the following statement true (T) or false (F)