Author Question: A good is considered normal when its income elasticity of demand is ___ and inferior when the its ... (Read 95 times)

littleanan · **on:** Jun 30, 2018

A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___.
a. Greater than zero, less than zero.
b. Less than zero, greater than zero.
c. Greater than one, less than one.
d. Less than one, greater than one.

Question 2

The steeper the short-run aggregate supply curve over the relevant range, the more contractionary monetary policy will reduce prices and the less it will decrease real output.
a. True
b. False
Indicate whether the statement is true or false