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Effectus [21]
4 years ago
11

Not all goods are normal goods. If the demand for a good rises when income falls, the good is called an ________ ________. An ex

ample of this kind of good might be bus rides. As your income falls, you are less likely to buy a car or take a cab and more likely to ride a bus.
Business
1 answer:
oksano4ka [1.4K]4 years ago
7 0

Answer:

Inferior good

Explanation:

An inferior good is a good for which demand rises when income falls and demand falls when income rises.

on the other hand,  Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

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Explanation:

All macroeconomic goals should be achieved in the long term macro equilibrium.

On the long term macro equilibrium, real GDP should be equal to potential GDP. This is all theoretical since there is no real possibility that the potential GDP is ever equal to the real GDP. There will always be at least one economic actor that is not being 100% efficient, so potential GDP is unreachable.

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Answer and explanation:

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