If you pay a constant percentage of your taxable income in taxes, the tax is

Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause

A) an increase in the demand for coffee. B) a decrease in the demand for coffee. C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.

To arrive at a more accurate measure of real output changes in an economy, nominal GDP figures should be adjusted for inflation

a. True b. False Indicate whether the statement is true or false