If Your Purchases of Shoes Remain Constant at 9 Pairs

question 73

Multiple Choice

If your purchases of shoes remain constant at 9 pairs per year when the price of shirts increases from $8 to $12, then, for you, shoes and shirts are considered:

• A) inferior goods.
• B) unrelated goods.
• C) substitute goods.
• D) complementary goods.

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Definitions:

Aggregate Demand

Aggregate demand represents the total demand for goods and services in an economy at a given overall price level and in a given time period.

Annually Balanced Budget

A financial plan where government's revenues are equal to its expenditures within a one-year period, resulting in no deficit.

Economic Stability

The condition of an economy characterized by steady growth, low inflation, and low unemployment, indicating overall health.

Cyclical Swings

Refers to the fluctuations in economic activity that occur over time, typically involving periods of economic expansion and contraction.