Suppose there is a reduction in consumer income and an increase in the price of jet fuel, an important resource used to produce air travel. If air travel is a normal good, how will these changes influence the price and quantity of air travel? The price of air travel will (be) ____ and quantity purchased will (be) ____

a. decrease; indeterminate
b. increase; indeterminate
c. decrease; decrease
d. indeterminate; decrease


d

Economics

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Transfer payments are not part of government expenditure on goods and services because transfer payments

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Economics

According to the Bureau of Economic Analysis, household disposable income fell by 0.3 percent of August, 2012. If all else remains the same, what is the likely impact of this fall on the real interest rate?

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Economics