An increase in income causes the demand of normal goods to _________ and the price of normal goods to
a. Increase; increase
b. Increase; decrease
c. Decrease; increase
d. Decrease, decrease
a
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Why should a system of marketable pollution permits lead to less costly pollution abatement than a command-and-control system?
What will be an ideal response?
According to the real business cycle theory, which of the following would be a real disturbance to the economy?
A. increase in the labor force B. reduction in the money supply C. change in the required reserve ratio D. increase in the price level
If ATC is $100, MC is $90 and AVC is $80, then
A. ATC is rising and AVC is rising. B. ATC is falling and AVC is falling. C. ATC is rising and AVC is falling. D. ATC is falling and AVC is rising.
The Phillips curve is a negative empirical relationship between
A. inflation and the real interest rate. B. unemployment and inflation. C. unemployment and output. D. bond prices and interest rates.