If pretzels are a normal good, the income effect of a price change means that
a. as income increases, the quantity demanded increases along the demand curve for pretzels
b. as income increases, the demand curve for pretzels shifts rightward
c. as income increases, the demand curve for pretzels shifts leftward
d. as the price of pretzels increases, the real income of individuals who demand pretzels decreases, so the quantity demanded of pretzels decreases
e. as the price of pretzels increases, income increases
D
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Money supply is to income as
a. real is to ideal. b. stock is to flow. c. real is to nominal. d. flow is to stock.
If Randy experiences a decrease in his income, we would expect that Randy's demand for
a. each good he purchases will remain unchanged. b. normal goods will decrease. c. most goods will increase. d. inferior goods will decrease.
Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165
The existence of long term leases agreements in rental markets:
A. harms landlords and benefits tenants by preventing landlords from raising the rent each month. B. solves a commitment problem that is inherent in markets with imperfect information. C. creates an informational advantage for landlords. D. benefits landlords by keeping occupancy rates high and harms tenants by reducing their mobility.