If our economy is growing at a constant rate of 5 percent per year, then over a period of 10 years we would expect to see which of the following?
A) nice, steady flat-line growth
B) an upward sloping growth path
C) a downward sloping growth path
D) It is impossible to say what kind of growth path we would see.
Answer: B) an upward sloping growth path
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The Wall Street Journal reports that "hard times aid poultry companies as people eat cheaper fowl." In the language of economists, this means
a. chicken is an inferior good. b. chicken has a negative substitution effect. c. chicken has a positive substitution effect. d. people's tastes change during recessions. e. chicken has a positive income effect.
Market demand curves are found by
a. vertically summing individual demand curves. b. horizontally summing individual demand curves. c. summing individual demand curves in a parallel fashion. d. adding the slopes of individual demand curves.