As the Price of Good X Rises as a Result

question 121

Multiple Choice

As the price of good X rises as a result of a decrease in supply, the demand for good Y falls. Therefore, goods X and Y are

• A)substitutes for one another.
• B)normal goods.
• C)complements to one another.
• D)inferior goods.

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Definitions:

Role Of Government

The activities undertaken by a government to regulate and guide the economy, including policy-making, taxation, and spending.

Unemployment Level

The number or percentage of the labor force that is without work but actively seeking employment.

Real Income

Real income refers to the amount of goods and services that can be bought with a given amount of money, taking into account inflation.

Flow Variable

A quantity that is measured over a specified period of time, such as income or expenditure.