Economics Answers

How decrease income which is normal goods

Suppose Colgate and Doctor Toothpastes are substitutes for each other; explain the effect of an increase in the price of Colgate on the demand for Doctor Toothpaste? Also, illustrate diagrammatically this change in the demand for Doctor Toothpaste will be entitled as a change in quantity demanded or a change in demand curve?

Suppose Colgate and Doctor Toothpastes are substitutes for each other; explain the effect of an increase in the price of Colgate on the demand for Doctor Toothpaste? Also, illustrate diagrammatically this change in the demand for Doctor Toothpaste will be entitled as a change in quantity demanded or change in demand curve?

1. The paradox of thrift states that a downward shift in the saving schedule will lower the equilibrium level of national income.

True False

2. If investment demand is given, the slope of aggregate demand is determined by the consumption function.

True False

3. An economy's aggregate demand curve shows that other things are constant:

A. when the general price level changes, there is a shift in the curve.

B. there is some price level that generates an aggregate equilibrium in the economy. 

C. any reduction in the general price level causes a reduction in GNP.

D. None of the above.

4. In a simple economy with the government but no foreign trade, aggregate income is in equilibrium when:

A. tax revenues equal government spending. 

B. planned savings equals planned investment. 

C. planned leakages equal planned injections. 

D. actual leakages equal actual injections.

If income is at a level at which planned saving is greater than planned investment, then: 

A. income will rise.

B. income will fall.

C. income will not change but saving will.

D. investment will rise. E. None of the above.

Due to substantial increases in prices in country A ,the real income level of the population in country A decreases.show on a diagram how the decrease in the income level in country A Wil affect the demand for meat, which is a normal good.also equilibrium price and equilibrium quantity will change in country A. The direction of any changes should be clearly indicated using arrows

What are the solutions that a nation can adopt to reduce unemployment

Illustrate and explain how equilibrium is determined in an oligopoly market structure.

What does a rightward shift in the demand curve mean?

Suppose now that country's national income increases to $13 billion. Assuming the amount paid in taxes is fixed at $3 billion and MPC = 0.75, what will be the new household consumption?