The only goods you consume are pizza and soda. Both are normal goods. You consider pizza and soda to be substitutes. Which of the following will lead you to eat more pizza?
A) The price of a pizza falls.
B) The price of a soda falls.
C) The price of a soda rises.
D) Both answers A and C are correct.
D
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New Keynesian economists believe that
a. movements in unemployment can be explained by voluntary movements in and out of the labor market.. b. everyone who is not working is involuntary unemployed. c. labor markets clear in the long-run. d. the new classical model has merit, but recessions cannot be adequately explained in a model of with perfectly flexible prices and wages.
The absolute value of a country's balance on current account will always equal its balance on capital account, although one is positive and the other negative
Indicate whether the statement is true or false
M1 money includes all the following except
a. traveler's checks b. demand deposits c. savings accounts d. paper money e. coins
In most major countries, including Japan, Canada, and the US, fluctuations in consumption are
a) countercyclical and more volatile than GDP b) countercyclical and less volatile than GDP c) procyclical and more volatile than GDP d) procyclical and less volatile than GDP e) unrelated to fluctuations in GDP