Growth in potential GDP in the United States is estimated to be about

Lizzie's budget line is shown in the figure above. If the price of a magazine rises, Lizzie's real income in terms of magazines books ________ and her real income in terms of cookies ________

A) increases; does not change B) decreases; does not change C) decreases; increases D) increases; decreases

Evan left a job in which he was earning $75,000 a year for one he liked better but pays only $50,000 a year. Around the same time as the job switch, Evan needed to buy a new car. Had he kept his old job he would have bought a new car but instead he was forced to buy a used car. Therefore

a. used cars are normal goods for Evan b. new cars are inferior goods for Evan c. the supply curve for new cars shifted to the left d. new and used cars are complements e. used cars are inferior goods for Evan