Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices that the price of ginger ale has increased 15 percent, so she decides to buy some peppermint tea instead. To which problem in the construction of the CPI is this situation most relevant?
a. substitution bias
b. introduction of new goods
c. unmeasured quality change
d. income effect
a
Economics
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According to the general utility formula, the marginal utility of product A divided by the ____________ is equal to the marginal utility of product B divided by the _____________.
Fill in the blank(s) with the appropriate word(s).
Economics
A recessionary gap exists when
A. real GDP exceeds nominal GDP. B. nominal GDP exceeds real GDP. C. real GDP exceeds potential GDP. D. potential GDP exceeds real GDP.
Economics