The substitution effect of a decrease in the price of an inferior good encourages the consumer to purchase more of the good while the income effect encourages the consumer to purchase less of it
a. True
b. False
A
Economics
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A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level
a. True b. False Indicate whether the statement is true or false
Economics
If autonomous consumption rises by $20 and, as a result, Real GDP rises by $200, then the multiplier is
A) 4. B) 5. C) 6. D) 10. E) none of the above
Economics
An increase in equilibrium price and a decrease in equilibrium quantity is most likely the result of:
A. an increase in demand. B. an increase in supply. C. a decrease in demand. D. a decrease in supply.
Economics
Suppose velocity is 3, real output is 9000, and the price level is 1.5. What is the level of real money demand in this economy?
A. 6000 B. 2000 C. 30,000 D. 3000
Economics