If an increase in the price of good X leads to an increase in the consumption of good Y, then goods X and Y are called:
A. substitutes.
B. inferior goods.
C. complements.
D. normal goods.
Answer: A
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The long-run aggregate supply curve of an economy corresponds to
A) a point inside the production possibilities curve. B) a point outside the production possibilities curve. C) a point on the production possibilities curve. D) none of the above: there is no relationship between the long-run aggregate supply curve and the production possibilities curve.
A country cannot develop without a large natural resource base
a. True b. False Indicate whether the statement is true or false
Since the 1970s, the most common causes of recessions have been
A. problems in financial markets and negative demand shifts. B. negative supply shifts and inflation fighting. C. problems in financial markets and inflation fighting. D. negative supply shifts and negative demand shifts.
Permanent income refers to the average level of a person's expected future income stream.
Answer the following statement true (T) or false (F)