Demand for one item goes down when the price of another item goes down. These items must be
A. complements.
B. inferior goods.
C. normal goods.
D. substitutes.
Answer: D
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The following table reports transactions that occurred in Whoville. Nominal GDP in Whoville is ________
Item Price per Unit Quantity Bottles of French Wine $20 10 Boxes of Cereal $4 20 Used Tires $15 5 Shares of Twitter Stock $10 15 Hours of Swimming Lessons $5 8 A) $320 B) $545 C) $120 D) $395 E) $195
Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect
Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________. A) more; less B) less; less C) more; more D) less; more
In reality, commercial banks function most like ____ of the district Federal Reserve Banks
a. stockholders b. regulators c. customers d. competitors
Supporters of supply-side economics would be most likely to argue ________ government intervention to reduce inequality by focusing on its effects on ________.
A. in favor of; economic growth B. in favor of; politics C. against; fairness D. against; economic growth