The income elasticity of demand for shoes is estimated to be 1.50. We can conclude that shoes:
A. have a relatively steep demand curve.
B. have a relatively flat demand curve
C. are a normal good.
D. are an inferior good.
Answer: C
Economics
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A recessionary gap can be closed with
A) using a contractionary monetary policy. B) an increase in taxes. C) a decrease in government purchases. D) using an expansionary fiscal policy.
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