Which would cause consumption to fall?
a. More income
b. An increase in wealth
c. Optimistic consumer expectations
d. A decrease in wealth
d. A decrease in wealth
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Which of the following statements is correct?
A) The depth and the length of all business cycles are identical. B) The depth and the length of all business cycles are different. C) Business cycles are caused by seasonal unemployment changes. D) Business cycles are caused by unanticipated inflation.
If two commodities are substitutes, then
a. they tend to be used together by consumers b. their prices are generally regulated by the government c. an increase in the price of one of them increases the supply of the other d. the cross-price elasticity of demand is positive e. the cross-price elasticity of demand is negative