If a good has an income elasticity of 1.83, then it:
A. is a normal good, and a necessity.
B. is an inferior good, and a necessity.
C. probably has a lot of close substitutes available.
D. is a luxury.
D. is a luxury.
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The biases in the CPI are
A) not important since they are so small. B) important only to economists, not the real world. C) important since they effect nearly 1/3 of federal government spending. D) not important although they are large.
A feature of debt markets in emerging-market countries is that debt contracts are typically
A) very short term. B) long term. C) intermediate term. D) perpetual.
Suppose the economy is at point 1 in Figure 13.1. With output below potential output, it might not be possible to create any expectation of an increase in inflation
How, then, might output be brought back to potential? What would this look like on the graph?
The most volatile GDP category under the expenditure approach is: a. wages and salaries
b. investment. c. consumption. d. government purchases.