Suppose the market demand curve for tacos can be expressed as QD = 120 - 3P - Pb, where QD is the quantity of tacos demanded, P is the price of a taco, and Pb is the price of a burrito. What is the relationship between burritos and tacos, from the point of view of consumers?
A) They are independent.
B) They are complements.
C) They are substitutes.
D) Not enough information to answer the question.
B
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What will happen to unemployed retail workers if the government is unable to target stimulus spending at the retail sector?
A. Most will become discouraged and leave the labor force. B. They may eventually find work after government spending works its way through the economy. C. They may eventually find work after the Fed reduces tax rates, increasing household consumption spending. D. They will remain permanently unemployed unless they find work in another sector of the economy.
In terms of economic growth, the key measure of the standard of living is
A) real GDP per capita. B) real GDP. C) nominal GDP. D) nominal GDP per capita.