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Author Question: Suppose a long lost relative died and left you a trust fund worth 1 million that you will receive ... (Read 84 times)

Themember4

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on: Jun 29, 2018
Suppose a long lost relative died and left you a trust fund worth 1 million that you will receive ten years from now. What effect, if any, will this have on your demand for airline travel? (Assume that airline travel is a normal good.)
 
  What will be an ideal response?

Question 2

Suppose the federal budget deficit for the year was 100 billion and the economy was in a recession.
 
  If the economy had been at potential GDP, it is estimated that tax revenues would have been 60 billion higher and government spending on transfer payments 50 billion lower. Using these estimates, the cyclically adjusted budget
  A) deficit was 210 billion. B) deficit was 110 billion.
  C) surplus was 110 billion. D) surplus was 10 billion.


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brittanywood

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Reply #1 on: Jun 29, 2018
Answer to Question 1

This will likely increase your demand for airline travel, shifting the curve to the right.

Answer to Question 2

D


Themember4

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

ktidd

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Reply 3 on: Yesterday
Excellent

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