If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that:
A. Y and Z are complements.
B. Y and Z are substitutes.
C. Y and Z are unrelated.
D. Y is a normal good and Z is an inferior good.
Answer: B
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A) an inflation rate targeting rule B) a natural unemployment rate targeting rule C) a monetary base instrument rule D) a nominal GDP targeting rule E) a money targeting rule
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Zoom out to the highest level. How does this affect the level of abstraction? When would each type of map be most useful? Generalize this argument by discussing the level of abstraction needed for alternative economic models.
A change in foreign demand does not affect aggregate demand
a. True b. False Indicate whether the statement is true or false