________ refers to a period when the ________ decreases. A) ...

[kwoodring]

________ refers to a period when the ________ decreases.
 
  A) Recession; growth rate of nominal GDP
  B) Recession; growth rate of output per person
  C) Productivity growth slowdown; growth rate of real GDP
  D) Productivity growth slowdown; growth rate of output per person

Question 2

In the market for magazines, the income effect means that
 
  A) magazines are usually purchased by people with higher than average incomes.
  B) a decrease in the price of a substitute product like books will make magazine readers feel a little poorer than they were before.
  C) an increase in the price of magazines will reduce the total purchasing power of magazine readers, making them able to afford fewer magazines.
  D) an increase in the price of magazines will raise the relative price of magazines to books, causing magazine readers to read more books and fewer magazines.

[mohan]

Answer to Question 1

D

Answer to Question 2

C

[kwoodring]

Excellent

[jomama]

YES! Correct, THANKS for helping me on my review