Suppose a consumer has preferences over two goods, X and Y, which are perfect substitutes. In particular, two units of X is equivalent to one unit of Y. If the price of X is $1, the price of Y is $3, and the consumer has $30 of income to allocate to these two goods, how much of each good should the consumer purchase to maximize satisfaction?
a. 30 units of X and 0 units of Y
b. 0 units of X and 10 units of Y
c. 15 units of X and 5 units of Y
d. 15 units of X and 0 units of Y
a
Economics
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The relationship between GDP and the money supply has gotten stronger since the 1980s
Indicate whether the statement is true or false
Economics
If the economy experiences a negative supply shock, which of the following will be true?
A) Inflation will fall, and real GDP will fall. B) Inflation will rise, and real GDP will rise. C) Inflation will fall, and real GDP will rise. D) Inflation will rise, and real GDP will fall.
Economics