If the price of a good falls, then the equilibrium consumption of that good:
A. increases if it is an inferior good.
B. remains the same.
C. decreases if it is a normal good.
D. None of the statements is correct.
Answer: A
Economics
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According to Keynesian analysis, if government expenditures and taxes are increased by the same amount, which of the following will occur?
A) Aggregate supply will decrease B) Aggregate supply will increase C) Aggregate demand will be unaffected D) Aggregate demand will decrease E) Aggregate demand will increase
Economics
Using equations for public and private saving, show that saving must equal investment in a closed economy. Begin with the expression for total saving in the economy
What will be an ideal response?
Economics