When the price of a good increases, all else equal, the higher price
a. reduces the consumer's set of buying opportunities.
b. leads to a parallel shift of the budget constraint.
c. will necessarily lead to an increase in the consumption of goods whose price did not change.
d. generally discourages the consumption of inferior goods.
a
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Indicate whether the statement is true or false
Which statement is a good argument in support of policy activism?
A) Policy lags are generally longer than the time it takes the self-correcting mechanism to work. B) Activist policies help to ensure stability of the real interest rate. C) Well-considered policies can assist the economy's self-correcting mechanism, thus reducing the variability of inflation and unemployment. D) all of the above E) none of the above
Why are math and graphics used in economic models?
Market-based management firms do not have structures like headquarters
Indicate whether the statement is true or false