If demand for personal computers increases as a result of an increase in income,
a. personal computers must be a normal good
b. personal computers must be an inferior good
c. personal computers must be a complement
d. the substitutes for personal computers must be inferior goods
e. the substitution effect is larger than the income effect
A
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If workers and firms expect that inflation will be 3 percent next year, and real wages are not changing over time, by how much will nominal wages increase?
A) more than 3 percent B) 3 percent C) less than 3 percent D) depends on actual inflation for next year
An increase in the price of good X will be accompanied by
a. a shift in the market demand curve for good X. b. a shift in the market demand curve for good Y (a substitute for good X). c. a movement along the market demand curve for good X. d. Both b and c.