Rising Average Prices and Lower Unemployment Most Likely Come from

question 119

Multiple Choice

Rising average prices and lower unemployment most likely come from

• A) higher interest rates.
• B) lower income tax rates.
• C) increases in the value of the Canadian dollar.
• D) improved technologies.
• E) investor pessimism.

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Definitions:

Engel Curve

A graph showing the relationship between income and expenditure on a particular good, illustrating how spending changes as income changes.

Normal Goods

Goods for which demand increases as consumer income increases, reflecting items that people buy more of as they become wealthier.

Income-Consumption Curve

A graphical representation showing how a consumer's optimal consumption changes in response to changes in income, holding prices constant.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded for it.