Inferior goods have negative income elasticities
a. True
b. False
Indicate whether the statement is true or false
True
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In the simple Keynesian cross model with no government or foreign sectors, at the equilibrium level of output
A) saving is less than investment. B) saving is equal to investment. C) saving is greater than investment. D) saving is equal to zero.
African countries contain a third of the world's population and over half of the world's extreme poverty
Indicate whether the statement is true or false
If monetary policy moves unemployment below its natural rate, both expected and actual inflation will rise
a. True b. False Indicate whether the statement is true or false
A utility function is a mathematical formula that assigns to each consumption bundle a numeric value that represents the:
A. opportunity cost of consuming the bundle. B. consumer's relative well-being from consuming the bundle. C. price the consumer would pay for the bundle. D. rates of substitution of the goods in the bundle.