Complementary goods are goods people consume together, such as peanut butter and jelly. If the price of peanut butter falls, we predict
A) the demand for peanut butter would increase.
B) the demand for jelly would increase.
C) the demand for peanut butter would decrease.
D) the demand for jelly would decrease.
B
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Which of the following situations would cause a period of stagflation at a later point in time?
A. A recessionary gap B. A reduction in investment spending C. An increase in technological development D. An inflationary gap
Successful monetary policy relies most on:
A. knowledgeable citizens who know how to react to the policy. B. luck. C. the institutional environment. D. having an ample supply of highly qualified people.
Prospect theory in behavioral economics predicts that as the price of flour increases, bakeries will try to avoid turning off their buyers by:
A. Increasing the unit prices of their products B. Reducing the unit sizes of their products C. Producing more units of their products D. Passively accepting lower profits
Along a curved line, the slope at the maximum
A) is greater than zero. B) is zero. C) is less than zero. D) may be greater than, less than, or equal to zero.