Q1. If an increase in the budget deficit reduces national saving and investment, we have witnessed a demonstration of?
Q2. Wage Increases. Your boss offers you a wage increase of 10 percent. Is it possible which you are worse off with the wage increase than you were before? Explicate your answer using proper economic terms and analysis
Q3. The cost of a plane ride rises by 10 percent. The price elasticity of demand for plane rides is 0.5 and the price elasticity of demand for riding the train is 0.2. The cross elasticity of demand for the train rides with respect to the cost of a plane ride is 0.4.
Compute the percentage that alter in quantity demanded of plane rides and train rides.