Suppose a long lost relative died and left you a trust fund worth ...

[Themember4]

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.

[brittanywood]

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]

Thanks for the timely response, appreciate it

[ryansturges]

Wow, this really help