Suppose the price of smoothies decreases, and the consumption bundle changes from point g to point h. The substitution effect leads to _____ granola bars and _____ smoothies, while the income effect leads to _____ of both goods.
Definitions:
Great Recession
A severe global economic downturn that took place from late 2007 through 2009, marked by significant declines in market and economic activity.
Great Recession
A significant global economic downturn that occurred from late 2007 through to 2009, marked by severe declines in economic activity worldwide.
Financial Crisis
A broad term for a situation in which financial assets suddenly lose a large part of their nominal value, leading to market disruptions and potentially an economic downturn.
Budget Deficit
The financial situation in which a government's expenditures exceed its revenues within a given fiscal year, leading to borrowing or debt accumulation.
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