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Author Question: Investment, a key component of aggregate demand, can cause recessions and booms based on ... (Read 66 times)

fahad

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on: Jun 30, 2018
Investment, a key component of aggregate demand, can cause recessions and booms based on fluctuations in its levels.
 
  Indicate whether the statement is true or false

Question 2

Bananas and apples are substitutes. When the price of bananas falls, and a technological advance in apple production occurs at the same time
 
  A) the equilibrium price of apples rises and the equilibrium quantity of apples falls.
  B) the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall.
  C) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
  D) the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.


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lkoler

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Reply #1 on: Jun 30, 2018
Answer to Question 1

TRUE

Answer to Question 2

D


fahad

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Reply #2 on: Jun 30, 2018
Thank you :)


lkoler

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Reply #3 on: Jun 30, 2018
Happy to help you


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