If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?
a. Both the equilibrium price and quantity would increase.
b. Both the equilibrium price and quantity would decrease.
c. The equilibrium price would increase, and the equilibrium quantity would decrease.
d. The equilibrium price would decrease, and the equilibrium quantity would increase.
b
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Two factors that have contributed to an increase in income inequality are
A) outsourcing of jobs and tax increases. B) economic growth and low inflation. C) technological change and globalization. D) low interest rates and a strong U.S. dollar.
For which of the following is demand most likely to be price inelastic?
a. lamb b. meat c. veal d. pork e. beef
Keynesians and supply-siders both agree that the government can take steps to reduce both the unemployment rate and the inflation rate
Indicate whether the statement is true or false
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.