You have just lost your job and therefore lost income. You start buying more sto

Question

You have just lost your job and therefore lost income. You start buying more store brand food and skip the fresh food aisle in the grocery. This means food for you is an good. Suppose that a presidential candidate who promised large personal income tax cuts is elected, the curve will shift to the. The short run level of and will both. Answer using the Aggregate demand, Aggregate supply model. Show on the graph. Suppose the reserve ratio is 20%. If Sam deposits $500 into his checking account, his bank can increase loans by: Show your work by using the formula you use for solving. $500. $2,500 $100. $400. Mohammed recently moved to Boston in order for his wife Leslie to begin a new job as an economics professor at Harvard. Mohammed is an experienced nurse who is currently interviewing with several different hospitals in Boston. Mohammed is currently classified by the BLS as being unemployed. Joe has just lost his job in Detroit because Ford just relocated to India leaving him unemployed.

Explanation / Answer

1.

Correct Answer:

Inferior Good

Explanation:

Demand of inferior goods increase with decrease in income and vice versa. In the given scenario also, with the loss of job and income, demand of store brand food increases. Thus, it is a case of inferior good.

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