Author Question: Which of the following is not a valid relationship? a. For a normal good: demand for a good ... (Read 53 times)

jace · **on:** Jun 30, 2018

Which of the following is not a valid relationship?
a. For a normal good: demand for a good increases when income falls.
b. For a normal good: demand for a good decreases when income falls.
c. For an inferior good: demand for a good decreases when income rises.
d. For an inferior good: demand for a good increases when income falls.

Question 2

Increases in the capital stock:
a. Shift the short run aggregate supply curve upward.
b. Shift the long run aggregate supply curve to the right.
c. Shift short run aggregate supply curves upward and long run aggregate supply curves to the right.
d. Do none of the above