If pretzels are a normal good, the income effect of a price change means that
a. as income increases, the quantity demanded increases along the demand curve for pretzels
b. as income increases, the demand curve for pretzels shifts rightward
c. as income increases, the demand curve for pretzels shifts leftward
d. as the price of pretzels increases, the real income of individuals who demand pretzels decreases, so the quantity demanded of pretzels decreases
e. as the price of pretzels increases, income increases
D
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The effect of a recession on a company like Whirlpool Corporation is such that
A) the decline in sales is more short-lived as compared to firms that do not produce durable goods. B) profits fall less sharply as compared to firms that do not produce durable goods. C) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods. D) sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods.
The "excess" growth rate of the money supply is the growth rate of money
A) plus the long-run growth rate of velocity. B) minus the long-run growth rate of velocity. C) plus the long-run growth rate of real GDP. D) minus the long-run growth rate of real GDP.