During an economic expansion as consumer incomes rise, holding everything else constant
A) the demand for most goods, except luxuries, will rise.
B) the prices of luxuries will fall while the prices of inferior goods will rise.
C) the demand for luxuries and inferior goods will rise.
D) the demand for luxuries will rise while the demand for inferior goods will fall.
D
Economics
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The mean income of 25 employees working in a firm is $1,754 per month. What is the total income of all the employees?
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Which of the following indices best signals future movements in retail prices?
a. The implicit GDP deflator b. nominal GDP c. The consumer price index d. The producer price index e. The measure of economic welfare (MEW)
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